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 148 of the Act on 27.11.2012. And then, he issued statutory notice u/s 143(3) and 142(1) of the ...