Reopening Based on “Reason to Suspect” Is Invalid: ITAT Chennai

Aryan Share & Stock Brokers Ltd. Vs ITO (ITAT Chennai) Reopening Based on “Reason to Suspect” Is Invalid: ITAT Chennai Quashes Section 147 Proceedings Against Stock Broker The Chennai Bench of the ITAT allowed the assessee’s appeal for AY 2017-18 and quashed the reopening as well as the consequential reassessment, holding that the Assessing Officer lacked valid “reason to believe” as required under Section 147. The assessee, a SEBI-registered stock broker, was subjected to reassessment on the allegation that it had received bogus accommodation entries of ₹7.15 crore from a clie...