Reopening Tax Assessment Needs New Evidence, Not Opinion Change; Share Premiums Are Capital Receipts, Not Taxable Income.

Reopening Tax Assessment Needs New Evidence, Not Opinion Change; Share Premiums Are Capital Receipts, Not Taxable Income. https://www.taxtmi.com/highlights?id=74613 Reopening of assessment u/s 147 - excessive share premium - The High Court observed that, the reopening of an assessment requires a valid "reason to believe" based on new tangible material, not merely a change of opinion or directives from higher authorities. Additionally, share premium received on issuance of fresh shares is considered a capital receipt, not income, and thus not taxable under the Act for the assessment year in question. en-us Sat, 03 Feb 2024 08:26:35 +0530 Sat, 03 Feb 2024 08:26:35 +0530 TaxTMI RSS Generator Reopening Tax Assessment Needs New Evidence, Not Opinion Change; Share Premiums Are Capital Receipts, Not Taxable Income. https://www.taxtmi.com/highlights?id=74613 Reopening of assessment u/s 147 - excessive share premium - The High Court observed that, the reopening of an assessment requires a valid "reason to believe" based on new tangible material, not merely a change of opinion or directives from higher authorities. Additionally, share premium received on issuance of fresh shares is considered a capital receipt, not income, and thus not taxable under the Act for the assessment year in question. Highlights Income Tax Sat, 03 Feb 2024 08:26:35 +0530 https://www.taxtmi.com/highlights?id=74613