https://www.taxtmi.com/caselaws?id=98142 Reassessment under section 34(1)(b) of the Indian Income-tax Act, 1922 was upheld where the original return and reconciliation statements did not clearly disclose the true nature of share-sale profits, and later information gave the officer reasonable grounds to believe income had escaped assessment. The company's objects permitted acquiring, holding, selling and turning to account shares, and its repeated replacement of investments showed a business activity rather than a mere capital adjustment. The articles and treatment of the surplus as capital reserve did not alter the tax character. The surplus on sale of shares was therefore treated as business profits taxable in the Revenue's favour. 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 was upheld where the original return and reconciliation statements did not clearly disclose the true nature of share-sale profits, and later information gave the officer reasonable grounds to believe income had escaped assessment. The company's objects permitted acquiring, holding, selling and turning to account shares, and its repeated replacement of investments showed a business activity rather than a mere capital adjustment. The articles and treatment of the surplus as capital reserve did not alter the tax character. The surplus on sale of shares was therefore treated as business profits taxable in the Revenue's favour. Case-Laws Companies Law Tue, 23 Jul 1963 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=98142