Proceeds of crime and property equivalent in value: failure to explain lawful source sustains attachment; lack of required notice can vitiate confirma...
Reopening an assessment requires a recorded 'reason to believe' supported by tangible material showing nexus to escapement of income; the AO relied on receipt of funds from a related third party and unsubstantiated suspicion without citing documents or evidence, and failed to undertake reasonable enquiries to convert suspicion into belief. The AO's reasons were scant, vague and based on subjective notions, amounting to a roving enquiry rather than an objective basis for reopening. Consequently, the reassessment notice was invalidated and relief granted to the taxpayer.
Reopening an assessment requires a recorded 'reason to believe' supported by tangible material showing nexus to escapement of income; the AO relied on receipt of funds from a related third party and unsubstantiated suspicion without citing documents or evidence, and failed to undertake reasonable enquiries to convert suspicion into belief. The AO's reasons were scant, vague and based on subjective notions, amounting to a roving enquiry rather than an objective basis for reopening. Consequently, the reassessment notice was invalidated and relief granted to the taxpayer.
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