Quashing of Assessment Order under Income Tax Act in absence of Tangible Material proving Income Escapement: Supreme Court issues Notice to SLS Energy Ltd [Read Order]

A two-judge bench of the Supreme Court issued notice to SLS Energy Private Limited. The Income Tax department filed the Special Leave petition (SLP) against the impugned final judgment and order passed by the High Court Of Bombay wherein quashed the  Assessment order under the Income Tax Act, 1961 in the absence of tangible material proving income escapement.

The petition was brought before the Bombay High Court challenging the notice issued under Section 148 of the Income Tax Act, 1961 (“the Act”), whereby the assessing office proposed to reassess the income for the assessment year 2010-11 on the ground that the income had escaped assessment within the meaning of Section 147 of the Ait. 

While quashing the reassessment order, the Court observed that “there was neither any basis for the assessing officer for his reason to believe that income had escaped assessment nor was there any tangible material which would have otherwise given jurisdiction to reopen the assessment even when the reopening was sought to be made within a period of four years.” 

Justice B V Nagarathna and Justice Augustine George Masih considering the SLP issued notice to the respondent assessee.

To Read the full text of the Order CLICK HERE

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