No reassessment on basis of wrong, incorrect & non-existing reasons

Karan Khurana Vs ITO (ITAT Delhi)

Conclusion: AO had recorded wrong, incorrect and non-existing reasons for reopening of the assessment. It made clear that there was a total non-application of mind on the part of AO while recording the reasons for reopening of the assessment.  The reasons failed to demonstrate the live link between the alleged tangible material and the formation of belief that income chargeable to tax had escaped assessment. Thus, reopening of the assessment was invalid and bad in law.

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