Section 147 Assessment Invalid if Based on Cash Deposit Information Alone

Dineshkumar Dalsangbhai Chaudhary Kankavati Society Vs ITO (ITAT Ahmedabad) Introduction: In a landmark decision by ITAT Ahmedabad, the Income Tax assessment made under section 147 based merely on the information of cash deposit was deemed not tenable in law. The case, Dineshkumar Dalsangbhai Chaudhary Kankavati Society Vs ITO, revolved around the reopening of the assessment based only on the information that the assessee had deposited cash in the bank. Analysis: The ITAT Ahmedabad reviewed the validity of reopening the assessment and restricting the addition by the AO under section 68 of the ...