https://www.taxtmi.com/caselaws?id=761974 ITAT Nagpur quashed the reopening of assessment under section 147, holding that reassessment cannot be done solely for verification purposes. The AO had reopened the case to verify the source of property purchase, but the tribunal ruled this was invalid, relying on Bombay HC precedent in Nivi Trading Ltd. The tribunal held that reassessment requires "reason to believe" income has escaped assessment, not mere verification or enquiry. Consequently, both the reopening and subsequent assessment order were declared invalid and bad in law. en-us Mon, 18 Nov 2024 00:00:00 +0530 Wed, 20 Nov 2024 10:36:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=761974 ITAT Nagpur quashed the reopening of assessment under section 147, holding that reassessment cannot be done solely for verification purposes. The AO had reopened the case to verify the source of property purchase, but the tribunal ruled this was invalid, relying on Bombay HC precedent in Nivi Trading Ltd. The tribunal held that reassessment requires "reason to believe" income has escaped assessment, not mere verification or enquiry. Consequently, both the reopening and subsequent assessment order were declared invalid and bad in law. Case-Laws Income Tax Mon, 18 Nov 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=761974