Delhi HC Allows Reassessment as DRI Information on Alleged Bogus Purchases Constituted Tangible Material

PCIT-7 Vs Paramount Communication Pvt. Ltd. (Delhi High Court) The Delhi High Court considered appeals filed by the Revenue against an order of the Income Tax Appellate Tribunal (ITAT), which had held that reassessment proceedings for Assessment Years (AYs) 2003-04, 2004-05, and 2005-06 were invalid. The assessee’s original assessments for all three years had been completed under Section 143(3) of the Income Tax Act, 1961. Subsequently, the Assessing Officer (AO) sought to reopen these completed assessments under Sections 147 and 148 on the basis of information received from the Directorate ...