ITAT Invalidates Reopening Based on Unverified Investigation Wing Info on Bogus Commodity Profits

Kishore Trading Company Vs ITO (ITAT Kolkata) Income Tax Appellate Tribunal (ITAT) Kolkata has set aside the reassessment of Kishore Trading Company for the Assessment Year 2012-13. The case arose when the Assessing Officer (AO) reopened the assessment under Section 147, based on information from the Investigation Wing that the assessee allegedly received accommodation entries disguised as commodity profits. The Tribunal found that the reassessment was initiated without independent verification and merely relied on borrowed satisfaction, making it legally untenable. Kishore Trading Company had...