https://www.taxtmi.com/caselaws?id=98142 Reassessment under section 34(1)(b) of the Indian Income-tax Act, 1922 may be initiated where the original return and reconciliation materials do not clearly disclose the true nature of profits from share sales, and later information gives the Income-tax Officer reasonable grounds to believe that income escaped assessment. Share-sale surplus may constitute taxable business profits where the company's memorandum authorises acquiring, holding, selling and turning shares to account, and repeated realisation and replacement of investments forms part of its normal business activity. Classification of the surplus as capital reserve and restrictive provisions in the articles of association do not alter that tax character. en-us Tue, 23 Jul 1963 00:00:00 +0530 Thu, 19 Jan 2012 13:10:05 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=98142 Reassessment under section 34(1)(b) of the Indian Income-tax Act, 1922 may be initiated where the original return and reconciliation materials do not clearly disclose the true nature of profits from share sales, and later information gives the Income-tax Officer reasonable grounds to believe that income escaped assessment. Share-sale surplus may constitute taxable business profits where the company's memorandum authorises acquiring, holding, selling and turning shares to account, and repeated realisation and replacement of investments forms part of its normal business activity. Classification of the surplus as capital reserve and restrictive provisions in the articles of association do not alter that tax character. Case-Laws Companies Law Tue, 23 Jul 1963 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=98142