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2018 (2) TMI 1219 - HC - Income TaxReopening of assessment - validity of notice - Held that:- We are conscious that the return of the assessee was originally accepted without scrutiny and that therefore the Assessing Officer had much greater latitude in reopening such assessment. Nevertheless, even in such cases, reopening of the assessment is not permissible in law unless the Assessing Officer has reason to believe that income chargeable to tax has escaped assessment. In this context, the question of validity of the reason demonstrating formation of belief by the Assessing Officer becomes relevant. As relying on case of one M/s.Prakriya Pharmachem thru Its current partner & others v. ITO [2016 (1) TMI 946 - GUJARAT HIGH COURT] reasons recorded by the Assessing Officer to form belief that the income chargeable to tax had escaped assessment lack validity. - Decided in favour of assessee
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