https://www.taxtmi.com/caselaws?id=774612 The HC held that reassessment proceedings for three assessment years were invalid. The assessee had fully disclosed all material facts and transactions, with scrutiny assessments under section 143(3) completed for two years where revenue accepted the purchases and sales. The sole basis for reopening was a statement from a key person which was retracted within a month, citing stress, trauma, and coercion. Neither the AO nor CIT(A) addressed the retraction. The HC emphasized that when retraction occurs, authorities must examine its validity before relying on the original statement. Since the orders were silent on this aspect, reassessment proceedings were deemed invalid. en-us Fri, 04 Jul 2025 00:00:00 +0530 Fri, 11 Jul 2025 08:39:46 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=774612 The HC held that reassessment proceedings for three assessment years were invalid. The assessee had fully disclosed all material facts and transactions, with scrutiny assessments under section 143(3) completed for two years where revenue accepted the purchases and sales. The sole basis for reopening was a statement from a key person which was retracted within a month, citing stress, trauma, and coercion. Neither the AO nor CIT(A) addressed the retraction. The HC emphasized that when retraction occurs, authorities must examine its validity before relying on the original statement. Since the orders were silent on this aspect, reassessment proceedings were deemed invalid. Case-Laws Income Tax Fri, 04 Jul 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=774612