1997 (1) TMI 477 - SC - Income Tax

On the basis of the information contained in the letter of Shri Bagai and the documents annexed to it, the ITO could have had reason to believe that the fair market value of the shares was far more than the sale price and the market quotations from the Calcutta Stock Association shown by the assessee at the time of original assessment were manipulated ones and as a result income chargeable to tax had escaped assessment - ITO was justified in taking action u/s 147(b)