Reassessment Based Solely on ADIT Report Without Independent Inquiry Quashed as Bad in Law

Ajay Singh Vs ACIT (ITAT Delhi) Income Tax Appellate Tribunal (ITAT), Delhi Bench, has nullified an addition of Rs. 25 lakh made under Section 68 of the Income Tax Act, 1961, against assessee Ajay Singh for Assessment Year 2012-13. The tribunal’s decision, pronounced on February 7, 2025, primarily hinged on the Assessing Officer’s (AO) failure to conduct independent inquiries before initiating reassessment proceedings, deeming it “borrowed satisfaction.” The appeal was filed by Ajay Singh against the order of the CIT(Appeals)-NFAC, Delhi, which had sustained the AO’s ...