Reassessment Notice Invalidated Due to Lack of Independent Inquiry and Misinterpretation of Exempt Capital Gains.

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....The Appellate Tribunal examined the validity of the reassessment notice issued u/s 148 and the consequent order passed u/s 147 regarding the addition made by the Assessing Officer u/s 69A, treating the long-term capital gain on the sale of shares claimed as exempt u/s 10(38) as bogus. The Tribunal held that when the reopening is based on information received from the investigation wing, the reasons must show that the Assessing Officer independently applied their mind to the information and formed their own opinion. However, in this case, the Assessing Officer merely stated the information received and their conclusion about the alleged escapement of income but did not mention what they did with the available information. The reasons must al.........