INCOME TAX ACT 1961

Reassessment - Notice under section 148 -Validity -Assessment was sought to be reopened by the issuance of notice under section 148 based on the information received from the office of the Director General of IT (Inv.) with regard to a complaint against the Sahara Pariwar:

Held : The reopening of assessment was based on mere suspicion as A.O had not made any effort to satisfy himself as to whether the information received from the office of the Director General of IT (Inv.) had some basis or not it therefore reopening of assessment, based on mere suspicion, was invalid in law and, therefore, liable to be quashed.

Income tax act 1961 section 147

Decision : In favour of assessee.
A. Y: 1999-2000

Case law analysis :Dy. CIT v. Rainee Singh [2009] 125 TTJ (Delhi) 816

SET Satellite (Singapore) Pvt. Ltd. v. Deputy Director of Income-tax