2012 (8) TMI 754 - SCH - Income Tax

SC rules reopening assessment under Section 147 invalid when stock dealings fully disclosed and loss is business loss

The SC held that reopening the assessment under section 147 was not maintainable where the assessee had fully disclosed details of its stock dealings and ... Reopening of assessment u/s 147 - assessee has a business loss or speculative loss - Held that:- As the assessee has disclosed full details in the Return of Income in the matter of its dealing in stocks and shares the loss incurred was a business loss - re-opening the assessment was not maintainable as decided in assessee's own case in ICICI Securities Ltd. Versus Asstt. Commissioner of Income Tax 3(2), Mumbai & Anr. [2006 (8) TMI 512 - BOMBAY HIGH COURT] - in favour of assessee. The Supreme Court dismissed the civil appeal regarding the re-opening of assessment by the Assessing Officer, stating it was a change of opinion. The assessee's loss in stocks and shares was considered a business loss by them but a speculative loss by the Revenue. The order re-opening the assessment was deemed not maintainable. No costs were awarded.