ITAT Kolkata: Reassessment Quashed – Reasons to Suspect Can’t Replace Reasons to Believe

Navnirman Infracon Pvt. Ltd. Vs ITO (ITAT Kolkata) Kolkata ITAT comprising quashed a reassessment initiated mechanically, holding it void ab initio for lack of sanction u/s 151 & absence of genuine belief of escapement of income. The case arose from a reassessment u/s 147/148 where AO added ₹2.18 crore as unexplained loan from Crescent Dealers Pvt. Ltd. & ₹2.70 crore u/s 56(2)(viia) towards alleged undervaluation of shares. Assessee contended that the notice u/s 148 was invalid since it did not disclose approval u/s 151 & the “reasons recorded” reflected only suspicion with...