Reassessment merely on DIT (Investigation) information is bad under law

Metro Decorative (P) Ltd. Vs. ITO (ITAT Delhi) Reasons recorded by the AO in this matter solely basing on the information received from the Directorate of investigation without any independent exercise of mental process cannot be construed as reasons to believe and the consequent proceedings of reopening are bad under law. Further, the approval/sanction of the Addl. CIT, is also not in accordance with the requirements of section 151 and this also vitiates the proceedings. For these reasons, the reopening proceedings are bad under law and are liable to be quashed.  FULL TEXT OF THE ITAT ORDER ...