Reassessment Quashed as Reasons Were Based on Incorrect Facts & Mechanical Recording

Allen De Noronha Vs ACIT-1 (ITAT Lucknow) The Lucknow ITAT allowed the assessee’s appeal and quashed the reassessment proceedings initiated under Sections 147/148 of the Income-tax Act, holding that the reasons recorded by the Assessing Officer were arbitrary, mechanically recorded, and lacked a direct nexus with the alleged escapement of income. The assessee challenged the order of the CIT(A) and also raised additional legal grounds before the Tribunal, contending that the Assessing Officer had mechanically recorded reasons for reopening the assessment and that the reasons were vague and ba...