Delhi HC Dismisses Reopening Based Solely on Audit Objection

PCIT Vs Chand & Co. Ltd. (Delhi High Court) The Revenue challenged two ITAT decisions holding that reopening of assessment for AY 2007-08 was unwarranted. The assessee had filed its books and declared closing stock of work-in-progress, and the original assessment was completed. The reassessment notice was issued solely on the basis of an audit objection alleging improper stock valuation, without any tangible new material. While the CIT and ITAT examined the matter on merits, the ITAT ultimately held that reopening was unwarranted, relying on CIT v. PVS Beedis Pvt. Ltd. The High Court found...