No reassessment on the basis of future contingencies resulting in escapement of income

Pavan Morarka Vs ACIT (Bombay High Court)

Conclusion: Reopening of an assessment under Section 148 was not justified on the ground that AO was of the opinion that a  contingency might   arise in future resulting an escapement of income which would be wholly impermissible and would amount to a rewriting of the statutory provision.

Held:  Assessee held 50% of the equity share capital of Shivum Holdings Pvt. Ltd. (Shivum) and 25% of the equity share capital of P & A Estate Pvt. L

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