Reassessment cannot be based solely on reevaluating existing facts without new substantive material

PCIT Vs Farmson Pharmaceuticals Gujarat Pvt Ltd (Gujarat High Court) In a significant ruling, the Gujarat High Court addressed the scope of reassessment under Section 147 of the Income Tax Act, 1961, in the case of PCIT Vs Farmson Pharmaceuticals Gujarat Pvt Ltd. The court’s decision stems from an appeal filed by the Income Tax Department challenging the validity of reassessment proceedings initiated after a scrutiny assessment. The case revolves around the reopening of assessment for the Assessment Year 2008-09, where the Assessing Officer (AO) sought to disallow additional depreciation...