https://www.taxtmi.com/caselaws?id=763408 The Gujarat HC quashed a reopening notice issued by the AO regarding cash deposits during demonetization. The petitioner had adequately explained the cash deposits as sales proceeds reflected in books of account, providing bank statements and audited balance sheets. The AO rejected this explanation merely citing lack of corroborative evidence without proper consideration of submitted documents. The court held that the AO failed to apply independent mind and establish a live link between information received and available records. The reopening was deemed invalid as it amounted to roving inquiry without reasonable belief of escaped income. en-us Mon, 02 Dec 2024 00:00:00 +0530 Thu, 14 May 2026 16:13:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=763408 The Gujarat HC quashed a reopening notice issued by the AO regarding cash deposits during demonetization. The petitioner had adequately explained the cash deposits as sales proceeds reflected in books of account, providing bank statements and audited balance sheets. The AO rejected this explanation merely citing lack of corroborative evidence without proper consideration of submitted documents. The court held that the AO failed to apply independent mind and establish a live link between information received and available records. The reopening was deemed invalid as it amounted to roving inquiry without reasonable belief of escaped income. Case-Laws Income Tax Mon, 02 Dec 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=763408