Reopening of assessment u/s 147 was not valid as the Revenue ...

Reopening invalid; mere discrepancy in computation method & legal interpretation isn't 'information'. Lack of reason to believe income escaped assessment. Sec 50C inapplicable on stock-in-trade sale.

Case Laws     Income Tax

August 7, 2024

Reopening of assessment u/s 147 was not valid as the Revenue Audit Report merely pointed out discrepancy in computation method and opined on applicability of Section 50C, which is an interpretation of law and not 'information' required for reopening. The Assessing Officer's reasons recorded for reopening showed lack of reason to believe income escaped assessment, being mere reason to suspect based on change of opinion. Section 50C was held inapplicable to sale after conversion of capital asset into stock-in-trade, following precedents. The appeal was allowed in favor of the assessee.

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