A notice under section 148 was challenged by the assessee. The reasons recorded stated that the assessee was a partner in the firm named M/s Vijya Laxmi Exports where an audit objection was raised as the deed of the partnership firm provided a clause to provide for interest and remuneration as per section 40(b) but no provision was made by the firm. High Court quashed the reopening proceedings which were beyond a period of four years as there was no failure to disclose any tangible material and there was no escapement of income. There was no material on record to show that assessee actually received any interest on capital or remuneration from the firm and where no such income is earned, there was no question of taxing the same. (SCA No. 20607 of 2018 dt. 7-01-2021) (AY.2011-12)