https://www.taxtmi.com/caselaws?id=312068 The Gujarat HC upheld the Tribunal's decision allowing the assessee's appeal against reopening of assessment under Section 147 for bogus LTCG from penny stock transactions. The court found that the AO's reasons were based on borrowed satisfaction from information received from Kolkata intelligence wing regarding third parties, without establishing any direct nexus or live link between the material and the specific assessee. The recorded statement of a third party did not name the assessee or relate to their broker. The court held that mere suspicion without independent application of mind and rational connection between available material and belief that income escaped assessment constitutes impermissible fishing inquiry, not valid "reason to believe" under Section 147. en-us Fri, 07 Jan 2022 00:00:00 +0530 Tue, 30 Jan 2024 17:26:31 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=312068 The Gujarat HC upheld the Tribunal's decision allowing the assessee's appeal against reopening of assessment under Section 147 for bogus LTCG from penny stock transactions. The court found that the AO's reasons were based on borrowed satisfaction from information received from Kolkata intelligence wing regarding third parties, without establishing any direct nexus or live link between the material and the specific assessee. The recorded statement of a third party did not name the assessee or relate to their broker. The court held that mere suspicion without independent application of mind and rational connection between available material and belief that income escaped assessment constitutes impermissible fishing inquiry, not valid "reason to believe" under Section 147. Case-Laws Income Tax Fri, 07 Jan 2022 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=312068