ITAT held that reopening of assessment u/s 147 was invalid. The...

ITAT held that reopening of assessment u/s 147 was invalid. The AO failed to establish a cogent 'reason to believe' regarding alleged bogus Long Term Capital Gains, merely acting on unsubstantiated information from Investigation Wing. The tribunal emphasized that 'reason to believe' is distinct from 'suspicion', and the AO's approach was casual and robotic. Without concrete material demonstrating nexus between entry operators and the assessee, the addition u/s 68 was deemed unsustainable. The capital gains from share transactions could not be arbitrarily labeled as sham profits. Consequently, the assessment reopening and consequent additions were quashed, decisively ruling in favor of the assessee.