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2015 (7) TMI 813 - HC - Income TaxReopening of assessment - ITAT confirming that profit on sale of shares is to be assessed under the head “income business” and not under the head “capital gains” - Held that:- Law mandates that the Assessing Officer should have reason to believe that income chargeable to tax has escaped assessment for any assessment year to invoke the power to re-open assessments under section 147 Admittedly, assessments for the year 2006-07 were completed treating the income in question as capital gains Once the assessment for the year 2008-09 was completed and the income for that year was assessed as business income, the Assessing Officer had sufficient materials to believe that income chargeable to tax as business income for the assessment year 2006-07 had escaped assessment It was on that basis, proceedings under section 147 was initiated The initiation of such proceedings under section 147, according to us, is fully within the four corners of section 147 of the Act. The factual correctness of the findings of the Assessing Officer was not disputed at any stage of the proceedings It was on the basis of the assessment for the year 2008-09 that the assessment for the year 2006-07 was re-opened and the same standard has been applied in respect of the assessment for 2010-11 also These findings, the factual correctness of which has been concurrently confirmed by the first appellate authority and the Tribunal, when appreciated in the light of the principles laid down by the Apex Court in Commissioner of Income Tax, Nagpur v Sutlej Cotton Mills Supply Agency Ltd [1975 (7) TMI 2 - SUPREME Court], only leads to the conclusion that the assessee was engaged in trading in shares and was not holding the shares as stock-in-trade to contend that the accretions are only capital gains. In such circumstances, the questions of law raised will have to be answered in favour of the Revenue
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