ITAT ruled against reopening of assessment concerning alleged ...

Tax Officials Cannot Reopen Assessment Based Only On Investigation Wing's Report About Alleged Cash Loans Under Section 147

February 3, 2025

Case Laws Income Tax AT

ITAT ruled against reopening of assessment concerning alleged unaccounted cash loans of Rs.11.05 crore. AO's action based solely on Investigation Wing's information about cash loans through a broker was deemed insufficient for establishing income escapement. The mere receipt of loans cannot constitute income without substantiating evidence of sham transactions. AO failed to discharge the burden of proof after assessee's denial, presenting no corroborating evidence of actual lenders or cash possession. No valuable assets or undisclosed income were discovered with the assessee. The tribunal invalidated the assessment reopening due to lack of tangible material demonstrating income concealment beyond mere information about loan transactions.

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ITAT ruled against reopening of assessment concerning alleged ...

Tax Officials Cannot Reopen Assessment Based Only On Investigation Wing's Report About Alleged Cash Loans Under Section 147

February 3, 2025

Case Laws Income Tax AT

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