Political contribution deductions require assessee-specific proof before cash-back allegations can justify disallowance or unexplained-money additions...
The HC quashed the reopening of assessment u/s 147, holding that the AO did not apply independent mind and relied solely on borrowed satisfaction from information on the insight portal without verifying material facts. The petitioner had disclosed share transactions through contract notes, ledger, and bank statements. The AO failed to form reasonable belief of income escapement as the disclosed profits were already offered to tax and accepted in regular assessment. Mere information from the insight portal, without examining assessee's records, cannot be a valid reason to believe income has escaped assessment.
The HC quashed the reopening of assessment u/s 147, holding that the AO did not apply independent mind and relied solely on borrowed satisfaction from information on the insight portal without verifying material facts. The petitioner had disclosed share transactions through contract notes, ledger, and bank statements. The AO failed to form reasonable belief of income escapement as the disclosed profits were already offered to tax and accepted in regular assessment. Mere information from the insight portal, without examining assessee's records, cannot be a valid reason to believe income has escaped assessment.
Note: It is a system-generated summary and is for quick reference only.
TaxTMI 
TaxTMI 
Join Channel 
