https://www.taxtmi.com/caselaws?id=406911 The court upheld the validity of the notice for reopening assessment under Section 147 of the Income Tax Act, 1961. It found that the Assessing Officer had sufficient reason to believe that income had escaped assessment due to undisclosed long-term capital gains from penny stock transactions. The court determined that the AO had independently applied his mind, obtained valid sanction under Section 151, and established a live nexus between the information received and the material gathered. Consequently, the court dismissed the writ application challenging the reopening of the assessment, ruling in favor of the tax authorities. en-us Mon, 15 Mar 2021 00:00:00 +0530 Mon, 26 Apr 2021 10:27:05 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=406911 The court upheld the validity of the notice for reopening assessment under Section 147 of the Income Tax Act, 1961. It found that the Assessing Officer had sufficient reason to believe that income had escaped assessment due to undisclosed long-term capital gains from penny stock transactions. The court determined that the AO had independently applied his mind, obtained valid sanction under Section 151, and established a live nexus between the information received and the material gathered. Consequently, the court dismissed the writ application challenging the reopening of the assessment, ruling in favor of the tax authorities. Case-Laws Income Tax Mon, 15 Mar 2021 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=406911