ITAT upheld invalid reassessment where the show-cause notice...

ITAT upheld invalid reassessment where the show-cause notice under the reopening procedure was not accompanied by the relied-upon material, despite the assessee's request, and held that RMS or Insight inputs did not dispense with independent verification, disclosure of material, or observance of natural justice. It further held that the appellate authority could test the legality of the reopening while hearing the reassessment appeal. Additions based on third-party seized papers, statements and loose sheets failed because the material was not properly furnished, cross-examination was denied, and the documents were uncorroborated. Section 69A was held inapplicable to alleged cash borrowing. Later-year notices were also held time-barred, so the consequential reassessments did not survive.

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