Reassessment to disallow employee’s PF contribution despite disclosure in Tax Audit report is invalid

S.R. Batliboi & Co. Vs ACIT (Calcutta High Court)

Kelvinator of India Ltd. (supra) has held that, after April 1, 1989 the assessing officer invoking the provisions of Section 147 of the Act of 1961 must have tangible material to come to the conclusion that, there was escapement of income from assessment. Reasons must have a live link with the formation of the belief. In the facts of the present case, the assessing officer had a tax audit report which disclosed the deductions claimed

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