Reopening of assessment - Addition u/s 68 - unsecured loans ...

Unsecured loans treated as bogus without credible evidence held unjustified. Reopening requires reason to believe, not mere suspicion.

Case Laws Income Tax

July 11, 2024

Reopening of assessment - Addition u/s 68 - unsecured loans treated as bogus - reassessment merely based on information from investigation wing held unjustified. Powers of assessing officer to reopen wide but not plenary - "reason to believe" required, not mere "reason to suspect". Belief must be of honest, reasonable person based on reasonable grounds, not suspicion or rumour. Assessing officer acted without jurisdiction if reason for belief of escaped income non-existent or irrelevant. Assessee furnished sufficient documents proving identity, creditworthiness of creditors, genuineness of transactions. Creditor's assessment order accepted creditworthiness. Hence, addition u/s 68 unwarranted.

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Reopening of assessment - Addition u/s 68 - unsecured loans ...

Unsecured loans treated as bogus without credible evidence held unjustified. Reopening requires reason to believe, not mere suspicion.

Case Laws Income Tax

July 11, 2024

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