Reassessment cannot be based solely on reasons borrowed from other departments or reports

Balaji Mines And Minerals Pvt Ltd Vs ACIT (Bombay High Court) In the case of Balaji Mines And Minerals Pvt Ltd vs ACIT, the Bombay High Court ruled that the reassessment cannot be based solely on reasons borrowed from other departments or reports, such as the Justice M.B. Shah Commission Report. The court held that the Assessing Officer failed to independently form opinions apart from what was borrowed from the report, which is essential for validly reopening an assessment. The petitioners challenged the notice under Section 148 of the Income Tax Act, which was based on reasons related to unde...