Reopening on ‘Borrowed Satisfaction’ Instead of ‘Independent Satisfaction’ is Unlawful

Paresh Babubhai Bahalani Vs ITO (Gujarat High Court) Gujarat High Court held that reopening of assessment under section 147 of the Income Tax Act merely based on ‘borrowed satisfaction’ as against statutory requirement of ‘independent satisfaction’ is bad-in-law. Facts- The petitioner who is an individual filed his return of income for A.Y. 2017-18 on 21.06.2017 declaring total income of Rs.7,67,190/- including the income under the head “Profit and Gains from business or profession” in accordance with the provisions of Section 44AD of the Act. The respondent-AO issued impugned noti...