Court Rules Reassessment Invalid; Assessee's Full Disclosure Upheld, Revenue's Grounds u/s 147 Limited.

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....The High Court held that the reassessment proceedings initiated by the Revenue were invalid due to the absence of any failure on the part of the assessee to disclose material facts fully and truly. The Court observed that the mere receipt of information from the Deputy Director of Income-tax (Investigation) about stock brokers misusing the client code modification facility did not provide a reasonable basis for believing that the assessee's income had escaped assessment. The Court emphasized that Section 147 explicitly stipulates the grounds and framework for initiating reassessment, and the Revenue cannot supplant it with a new formulation. Since the assessee had not failed to disclose any material fact, there was no scope for initiating r.........