Reasons To Believe' For Reopening Must Based On Credible Information : Kolkata ITAT

In a recent decision, the Kolkata ITAT upheld the reopening of assessment citing credible information. The tribunal emphasized that undisclosed bank deposits formed a valid reason for reopening under section 147. It rejected the taxpayer's contention that no fresh material existed beyond the original assessment. The ruling clarified that the Assessing Officer's belief in the existence of undisclosed income was reasonable based on banking information. This case underscores the ITAT's stance on reopening assessments based on credible information and its implications for taxpayers disputing such actions.