KYC Not Done By Purchasing Party Is Not A New Fact To Reopen Proceedings: Bombay High Court Declines Reassessment

The Bombay High Court rejected a reassessment plea by the tax department, stating that the non-completion of KYC (Know Your Customer) norms by the purchasing party does not constitute new information warranting the reopening of tax assessment proceedings. The court emphasized that reassessment cannot be based on the same facts that were already considered during the original assessment. This ruling provides clarity on the scope of reassessment under the Income Tax Act and ensures that tax authorities cannot misuse the reassessment mechanism for cases where there is no substantial new evidence.