https://www.taxtmi.com/caselaws?id=456732 ITAT Mumbai quashed the reassessment notice u/s 148 after finding that the AO lacked "reasons to believe" required under section 147. The AO suspected the assessee purchased goods from grey market based on Investigation Wing information, but later accepted the purchases and sales as genuine during investigation. The tribunal held that the AO's reasons constituted mere "reason to suspect" rather than "reasons to believe" as statutorily required, since no preliminary enquiries were conducted to establish actual income escapement. The assessee's appeal was allowed. en-us Fri, 16 Dec 2022 00:00:00 +0530 Sat, 10 Aug 2024 18:36:19 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=456732 ITAT Mumbai quashed the reassessment notice u/s 148 after finding that the AO lacked "reasons to believe" required under section 147. The AO suspected the assessee purchased goods from grey market based on Investigation Wing information, but later accepted the purchases and sales as genuine during investigation. The tribunal held that the AO's reasons constituted mere "reason to suspect" rather than "reasons to believe" as statutorily required, since no preliminary enquiries were conducted to establish actual income escapement. The assessee's appeal was allowed. Case-Laws Income Tax Fri, 16 Dec 2022 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=456732