Reopening of assessment invalid where taxpayer fully disclosed capital reduction records and securities premium payments, so proviso criteria unmet.

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....Reopening of assessment under income tax law was challenged after a capital reduction where payment to shareholders used the securities premium account. The taxpayer produced ledger entries, share certificates, tax residence certificates, ROC registration of capital reduction and remittance proofs in response to AO queries. The commentary concludes that the taxpayer had made full and true disclosure of material facts, Explanation (1) to the reopening provision did not apply, and the reopening failed to satisfy the proviso criteria; consequently the reassessment was held invalid and the appeal allowed.....