Facts of the case:
- Assessee in its income tax return had shown a receipt of on transfer of leasehold rights in a property in favour of one Morarji Textiles and after claiming indexed cost and other related deductions, offered to tax the capital gain arising out of such transfer.
- During scrutiny, the Assessing Officer did not disturb petitioner's treatment to said receipt.
- Later, Assessing Officer of Morarjee Textiles had held that leasehold rights belong to Morarjee Textiles itself and therefore, Morarjee was wrong in claiming that it had purchased such rights from assessee. On basis of same, Assessing Officer observed that assessee had filled inaccurate particulars and, thus, income had escaped assessment and issue reassessment notice.
Judgement: - The High Court held that what the Assessing Officer is attempting to do is to review his own conclusions formed during original assessment after full examination, with aid of not new or additional materials but on basis of conclusions of another Assessing Officer; which are based on same materials available during original assessment before him and, that it is wholly impermissible and quashed impugned notice.
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