https://www.taxtmi.com/caselaws?id=772462 Reopening of assessment was challenged on the ground that the reason to believe was based on general intelligence about penny stock rigging and not on specific material linking the taxpayer to bogus accommodation entries. The court held that generalized reports and a third party statement did not convert suspicion into a reason to believe that income had escaped assessment, and that mere purchase and sale producing short term capital loss was insufficient to characterise transactions as sham. Relying on CNB Finwiz and Lakhmani Mewal Das, the HC concluded no tangible material justified reopening for the year and allowed the taxpayer's appeal. en-us Fri, 30 May 2025 00:00:00 +0530 Mon, 09 Feb 2026 10:16:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=772462 Reopening of assessment was challenged on the ground that the reason to believe was based on general intelligence about penny stock rigging and not on specific material linking the taxpayer to bogus accommodation entries. The court held that generalized reports and a third party statement did not convert suspicion into a reason to believe that income had escaped assessment, and that mere purchase and sale producing short term capital loss was insufficient to characterise transactions as sham. Relying on CNB Finwiz and Lakhmani Mewal Das, the HC concluded no tangible material justified reopening for the year and allowed the taxpayer's appeal. Case-Laws Income Tax Fri, 30 May 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=772462