https://www.taxtmi.com/caselaws?id=459797 The ITAT Kolkata held that reopening of assessment was invalid as the AO failed to correlate investigation wing information with assessee's accounts and lacked credible material to believe income escaped assessment. Reopening based on borrowed satisfaction without tangible evidence constitutes fishing enquiry and is impermissible. Regarding addition under section 68 for unsecured loans from alleged shell companies, the tribunal found AO merely relied on investigation report without examining evidence furnished by assessee proving identity, creditworthiness and genuineness of transactions. Since creditors had sufficient net worth, loans were repaid with interest, TDS deducted, and no discrepancies identified in documentation, the addition was deleted. Assessee's appeal allowed. en-us Tue, 02 Jul 2024 00:00:00 +0530 Sat, 28 Dec 2024 00:31:28 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=459797 The ITAT Kolkata held that reopening of assessment was invalid as the AO failed to correlate investigation wing information with assessee's accounts and lacked credible material to believe income escaped assessment. Reopening based on borrowed satisfaction without tangible evidence constitutes fishing enquiry and is impermissible. Regarding addition under section 68 for unsecured loans from alleged shell companies, the tribunal found AO merely relied on investigation report without examining evidence furnished by assessee proving identity, creditworthiness and genuineness of transactions. Since creditors had sufficient net worth, loans were repaid with interest, TDS deducted, and no discrepancies identified in documentation, the addition was deleted. Assessee's appeal allowed. Case-Laws Income Tax Tue, 02 Jul 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=459797