ITAT invalidates Reassessment under Income Tax Act as Alleged Transaction already shown on Return Filed: Calcutta HC dismisses Appeal

This article covers a Calcutta High Court ruling that dismissed an appeal challenging the invalidation of a reassessment under the Income Tax Act. The Income Tax Appellate Tribunal (ITAT) had previously found that the reassessment was invalid because the alleged transaction had already been disclosed in the assessee's original tax return. The High Court upheld the ITAT's decision, emphasizing that reassessments cannot be based on transactions that have already been reported and scrutinized. This ruling underscores the principle that reassessment should not be used as a tool for reopening settled matters unless there is new and substantive evidence.