Reassessment under section 147(a) failed where no duty existed to disclose third-party gifts to minor sons.

Reassessment under section 147(a) was held invalid because the assessee had no duty to disclose, in his return, gifts made by a third party to his minor sons. As the alleged non-disclosure concerned a matter not required to be stated by the assessee, reopening could not be sustained on that basis. The Revenue also failed to show any independent information justifying initiation of proceedings. The question was answered against the Revenue.

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Issues: Whether the initiation of reassessment proceedings under section 147(a) of the Income-tax Act, 1961 was valid on the facts of the case.

Analysis: The assessee was under no obligation to disclose in his return the fact that gifts had been made by a third party to his minor sons. Since the non-disclosure related to a matter not required to be stated by the assessee, the reopening could not be sustained under section 147(a). No independent information was shown by the Revenue as the basis for reopening.

Conclusion: The initiation of proceedings under section 147(a) was invalid, and the question was answered against the Revenue.

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