https://www.taxtmi.com/caselaws?id=445654 Bombay HC held reassessment proceedings under Section 148 invalid as the Assessing Officer lacked proper material to form belief that arbitration award amount was taxable income. The appellant received Rs. 28 crores upon retirement from partnership firm through arbitration settlement. Court found the amount was capital receipt relating to relinquishment of partnership rights, not income from other sources. The reassessment constituted impermissible change of opinion since similar receipts in previous year were held non-taxable. ITAT erred in treating entire award as taxable income without bifurcating components or considering capital versus revenue nature of settlement. en-us Wed, 08 Nov 2023 00:00:00 +0530 Fri, 12 Jul 2024 12:48:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=445654 Bombay HC held reassessment proceedings under Section 148 invalid as the Assessing Officer lacked proper material to form belief that arbitration award amount was taxable income. The appellant received Rs. 28 crores upon retirement from partnership firm through arbitration settlement. Court found the amount was capital receipt relating to relinquishment of partnership rights, not income from other sources. The reassessment constituted impermissible change of opinion since similar receipts in previous year were held non-taxable. ITAT erred in treating entire award as taxable income without bifurcating components or considering capital versus revenue nature of settlement. Case-Laws Income Tax Wed, 08 Nov 2023 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=445654