S.147: Reassessment – After the expiry of four years – No failure to disclose material facts – Change of opinion – Capital gains or business income – Sale of shares – Reassessment proceedings are quashed. [ S. 28(i), 45, 148, 154, Art 226 ]

S.147: Reassessment – After the expiry of four years – No failure to disclose material facts – Information based on search of third party – Reason recorded not indicated anywhere or any stretch of imagination the income has escaped assessment – Non application of mind by the sanctioning authority – Observed that the Assessing Officers will record better reasons for reopening and the Authority granting approval will also apply their mind sincerely before granting approval – Re assessment proceedings was quashed [ S. 148, 151, Art 226 ]

S.269SS: Acceptance of loans and deposits -Penalty Failure to prove reasonable cause – Penalty order was affirmed – Order of Tribunal is reversed [ S. 271D, 273B ]

S. 276CC : Offences and prosecutions-Failure to furnish return of income-Failure to file the return on due date-Wilful attempt to evade tax-Presumption of culpable mind-Burden is on the assessee to prove that the failure was not wilful. [S. 276C, 278E, Form No 26AS, Code of Criminal Procedure, 1973, S. 482]

S. 215 : Interest payable by assessee-Waiver of interest-Regular assessment means first order / original assessment-Delay not attributable to the assessee the interest is not leviable. [S. 139(8), 143(3), 144, 215(3) ITR, 1962, Rule, 40(1)]

S. 148 : Reassessment-Notice-Notice issued to non-existing entity-Notice invalid-Notice could not be corrected u/s. 292B of the Act. [S. 292B, Art. 226]

S. 148 : Reassessment-Assessment processed u/s. 143(1)-Fresh claim of loss in reassessment proceedings-Held to be allowable-Deletion of Explanation to section 143 from 1-6-1999, intimation under section 143(1) ceases to be an order for purposes of section 264. [S. 143(1), 147, 264]

S. 147 : Reassessment-Within four years-Reasons based on erroneous and incorrect facts-Non application of mind-Notice was quashed. [S. 143(1), 148, 151 Art. 226]

S. 147 : Reassessment-Within four years-Change of opinion-Long term Capital gains-Applicability of Rate of tax at 10% or 20%-Examined in the original assessment proceedings-Reassessment is bad in law. [S. 48, 112, 148, Art. 226]

S. 147 : Reassessment-After the expiry of four years-Recorded reasons must indicate the manner in which the Assessing Officer has come to the conclusion that income chargeable to tax has escaped assessment-Reason recorded cannot be substituted-Reassessment Notice was quashed. [S. 148, Art. 226]