Re-opening of assessment merely based on information from DGIT(Inv.) is untenable

Rajnish C. Bharti Vs ITO (ITAT Mumbai)

ITAT Mumbai held that re-opening of assessment without ‘reason to believe’ simply based on the information from DGIT(Inv.) is untenable in law.

Facts- The assessee had filed ROI on 28.07.2009 declaring total income of Rs.2,49,860/-. Later AO received an information from the office of the DGIT(Inv.) regarding assessee’s bogus claim of expenses to the tune of Rs.6,16,79,235/- from various parties. Therefore, he reopened the assessment by issuing notice u/s 14

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