Reassessment Proceedings Invalidated Due to Lack of Independent Verification by Assessing Officer in High-Value Transactions.

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....The ITAT Ahmedabad considered the validity of reassessment proceedings based on borrowed satisfaction by the AO. The AO alleged non-independent application of mind by the assessee in high-value financial transactions leading to unexplained cash credit u/s 68. The AO relied on an investigation report from the Income Tax Department's Investigation Wing. However, the ITAT found that the AO failed to verify double entries in the transactions and did not formulate his own "reason to believe" but relied on information from DGIT, amounting to "borrowed satisfaction." The reassessment was deemed bad in law as the AO did not have an independent reason to believe income had escaped assessment. The decision favored the assessee, following the precedent set in Varshaben Sanatbhai Patgel.....