Reassessment on mere non disclosure of non taxable receipt was invalid

The Swastic Safe Deposit and Investments Ltd Vs ACIT & Ors. (Bombay High Court)

Conclusion:Where the documents on record conclusively establish that the receipt did not give rise to any taxable income, it would not be open for AO to reopen the assessment referring only to the non disclosure of the receipt in the return of income.

Held: In the instant case, M/s. S Pvt Ltd before its amalgamation with assessee-company, had sold shares of M/s. P Ltd for a total consideration. This was through recognized stock ex

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