Reopening Quashed: AO Relied on Investigation Wing Without Applying Mind

Bhai Industries Pvt. Ltd. Vs ITO (ITAT Amritsar) Income Tax Appellate Tribunal (ITAT) Amritsar Bench has set aside the reassessment proceedings initiated against Bhai Industries Pvt. Ltd. for the Assessment Year 2011-12, effectively quashing the addition of Rs. 58,74,080/- made by the Assessing Officer (AO) on account of alleged bogus purchases. The Tribunal’s decision primarily hinged on the AO’s failure to independently apply his mind and the denial of the assessee’s right to cross-examine key witnesses, among other procedural infirmities. Bhai Industries Pvt. Ltd., a flour...