Reassessment dropped as tax paid on consolidated profit and hence no escapement of income

ITO Vs Kanji Ambabhai Cotton Industries (ITAT Rajkot)

ITAT Rajkot held that there is no escapement of income or loss of revenue since tax paid on the basis of consolidated profit of both the partnership firm and hence reassessment proceedings are not sustainable. Accordingly, appeal of revenue is dismissed.

Facts- The case was reopened by issue of notice u/s 148 dated 30.03.2021. During the course of hearing of the case it was submitted that M/s Kanji Ambabhai Cotton Industries (PAN: AAIFK1676L) and M/s Kanji Ambabhai & Co (PAN: AACFK2391J) are two sepa

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