The ITAT, an Appellate Tribunal, reviewed the validity of an ...

The tax tribunal overturned a decision to reassess a taxpayer based on incorrect info from a bank.

Case Laws Income Tax

July 4, 2024

The ITAT, an Appellate Tribunal, reviewed the validity of an assessment order challenged due to reasons recorded without proper application of mind u/s 148A. The AO based reasons on information from the AIR uploaded by a reporting entity about deposits in a J&K bank account not belonging to the assessee. The ITAT held that the CIT(A) erred in affirming the addition without recognizing the incorrect assumption that the account belonged to the assessee, despite a bank certificate confirming otherwise. The ITAT deemed the reasons recorded as legally flawed, emphasizing that reopening cannot be based on incorrect facts derived from AIR information. Consequently, the ITAT allowed the appeal, concluding that the assessment made on such grounds should be quashed.

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The ITAT, an Appellate Tribunal, reviewed the validity of an ...

The tax tribunal overturned a decision to reassess a taxpayer based on incorrect info from a bank.

Case Laws Income Tax

July 4, 2024

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