Routing Of Funds Through Tax Havens Not Disclosed During Original Proceedings: Bombay HC Confirms Reassessment

Delhi High Court held that reopening of income tax assessment is justified when the assessee did not disclose circuitous movement of funds through companies located in tax havens during the original assessment. The court reasoned that the failure to disclose such transactions, which could have implications for tax liability, constitutes a valid ground for reopening the assessment under the Income Tax Act to investigate potential tax evasion.