https://www.taxtmi.com/caselaws?id=760271 Delhi HC quashed reassessment proceedings under section 147. The AO attempted to reopen assessment based on an unsecured loan shown in petitioner's balance sheet, claiming it was unexplained income under section 68. However, the assessee had clearly disclosed the loan was from its director and provided adequate explanation in financial statements. The court held AO lacked material to form belief that income escaped assessment, distinguishing between "reason to believe" and "reason to suspect." Since necessary conditions for reassessment were not satisfied, the petition was allowed. en-us Thu, 26 Sep 2024 00:00:00 +0530 Thu, 17 Oct 2024 10:28:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=760271 Delhi HC quashed reassessment proceedings under section 147. The AO attempted to reopen assessment based on an unsecured loan shown in petitioner's balance sheet, claiming it was unexplained income under section 68. However, the assessee had clearly disclosed the loan was from its director and provided adequate explanation in financial statements. The court held AO lacked material to form belief that income escaped assessment, distinguishing between "reason to believe" and "reason to suspect." Since necessary conditions for reassessment were not satisfied, the petition was allowed. Case-Laws Income Tax Thu, 26 Sep 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=760271