The reassessment notice was issued on the ground that the  assessee has resorted dubious method of buyback of shares to avoid dividend tax. Thus the transaction is a colorable device to avoid tax and it clearly amounts to tax evasion. The assessee company has utilized the accumulated profit for buy back of the shares and this arrangement is a convenient ploy to get round the dividend distribution tax liability and the payment towards buyback was indeed divided. By not paying the dividend, the company has avoided DDT. Instead of paying dividend, the company has offered a buyback offer which is accepted by the holding company and therefore I have reason to believe that the income of Rs.11,04,29,642/-chargeable to tax has been under assessed. On writ allowing the petition the Court held that  issue of notice after expiry of four years, without there being any element of lack of true and full disclosure on the part of the assessee-Reassessment notice is held to be bad in law. (AY.2011-12)