Rajasthan High Court Upholds Reassessment in Doubtful Investment Case

Prakash Kumar Chandnani Vs DCIT (Rajasthan High Court) Rajasthan High Court has dismissed a petition filed by Prakash Kumar Chandnani, affirming the Assessing Officer’s (AO) decision to initiate reassessment proceedings under Section 148A(d) of the Income Tax Act, 1961. The court ruled that reassessment is justified when the source of investments, including contributions claimed from a mother, remains doubtful and inadequately explained. This decision underscores the limited scope of judicial review in reassessment initiation stages, emphasizing that detailed factual examinations are the...