Reopening u/s 148 not sustainable in absence of reason to believe that income has escaped assessment

Ms Kargwal Products P. Ltd. Vs DCIT (ITAT Mumbai) Conclusion – Basic requirement of reopening of assessment is ‘reason to believe’ that the income has escaped assessment without which reopening under Section 148 of Income Tax Act, 1961 is is not sustainable Facts – Assessee filed the ROI for AY 2009-10 on 31.03.2010 and the assessment was processed u/s 143 (1). However, assessment was reopened u/s 147 on 29th March, 2014 and accordingly notice u/s 148 was issued on 29th March, 2014. Assessee contended that the reasons recorded by the AO were not valid to invoke section 148. The reopen...