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2016 (6) TMI 381 - HC - Income TaxReopening of assessment - recording of reasons - formation of belief - petitioner has disclosed loss of ₹ 77,51,810/- and the petitioner has been assessed at an income of ₹ 35,96,518/- on the book profit under section 115JB - Held that:- In the light of the decision of this court in the case of India Gelatine and Chemicals Ltd. v. Assistant Commissioner of Income Tax (No.1) (2015 (2) TMI 808 - GUJARAT HIGH COURT), having regard to the fact that even if the entire amount which is proposed to be added by the Assessing Officer is sustained, there would be no addition to the tax liability of the petitioner and the petitioner would still be governed by the provisions of section 115JB of the Act and assessed on the same book profit, it cannot be said that there was sufficient material before the Assessing Officer to form the belief that income chargeable to tax has escaped assessment. The impugned notice issued under section 148 of the Act, therefore, cannot be sustained. For the foregoing reasons, the petition succeeds and is, accordingly, allowed in favour of assessee.
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