Delhi ITAT Quashes Reassessment for ‘Reason to Suspect’ – Cash Deposits Alone Can’t Justify Reopening

Ravi Chopra Vs ITO (ITAT Delhi) Delhi ITAT Quashes Reassessment for ‘Reason to Suspect’ – Cash Deposits Alone Can’t Justify Reopening The Delhi ITAT quashed a reassessment initiated merely on the basis of large cash deposits and information received from the Investigation Wing, holding that the Assessing Officer had only a “reason to suspect” and not a legally sustainable “reason to believe” that income had escaped assessment. The Tribunal observed that the AO himself recorded that there were “high chances” of escapement of income requiring scrutiny, which clearly indic...