https://www.taxtmi.com/caselaws?id=796517 Reassessment based solely on a suspicious transaction report was invalid where audited financial statements, capital accounts and tax-audit material showed that the questioned receipts were capital infusion or withdrawal by a partner under the partnership arrangement. Withdrawal of a partner's capital balance did not itself demonstrate income escaping assessment, and the reassessment order failed to address the taxpayer's explanation and supporting evidence. In the absence of third-party statements, incriminating material, or evidence that the bank transactions were bogus or accommodation entries, mere suspicion could not justify reopening. The reassessment notices and orders were quashed. en-us Mon, 27 Jul 2026 00:00:00 +0530 Thu, 06 Aug 2026 09:11:10 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=796517 Reassessment based solely on a suspicious transaction report was invalid where audited financial statements, capital accounts and tax-audit material showed that the questioned receipts were capital infusion or withdrawal by a partner under the partnership arrangement. Withdrawal of a partner's capital balance did not itself demonstrate income escaping assessment, and the reassessment order failed to address the taxpayer's explanation and supporting evidence. In the absence of third-party statements, incriminating material, or evidence that the bank transactions were bogus or accommodation entries, mere suspicion could not justify reopening. The reassessment notices and orders were quashed. Case-Laws Income Tax Mon, 27 Jul 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=796517