Suspicion Alone Cannot Trigger Reassessment: ITAT Delhi on Validity of 147 Notice

Subhash Shah Vs ITO (ITAT Delhi) AO’s Belief Found Baseless – Reopening Held Void as Return Was Already Filed with Audited Accounts – Suspicion Cannot Replace Evidence Assessee, proprietor of M/s Fancy Cloth House, challenged reassessment framed u/s 147/148 whereby AO treated cash deposits of Rs.1,12,55,000/- in Dena Bank as unexplained. AO reopened the case on 22.03.2017 on basis of information that Assessee had made cash deposits in FY 2009-10 but had not filed return of income. During reassessment, Assessee explained that deposits represented sale proceeds of garment trading b...