Reopening on Estimate Based on Vague Information Is Not Valid

Vikas Chowdhary Vs ITO (ITAT Delhi) It is well settled law that validity of the reassessment proceedings is to be determined on the basis of the reasons recorded for reopening of the assessment. The reasons are reproduced above. The AO as per NMS information which was pushed into the ITD system came to know that assessee has made transactions amounting to Rs. 107.89 crores with National Multi Commodity Exchange. No return has been furnished by assessee. The AO, therefore, deemed that income chargeable to tax assessment in a sum of Rs. 1 lakh or more has escaped assessment. The AO, however, in ...