Taxpayer Wins: Income Reassessment Invalidated Due to Lack of Substantial New Evidence in Share Trading Case

ITAT held that the Assessing Officer (AO) improperly reopened the assessment without valid reasons. The AO's belief of income escapement was based merely on reappreciation of existing financial information about share trading, which was already on record. No new tangible evidence demonstrated that the Long Term Capital Gain was bogus. Since the original assessment limitation period had expired, the AO was precluded from revisiting and changing the original assessment. The tribunal found the reopening procedurally invalid, determining that the AO's observations were speculative and did not constitute legitimate "reasons to believe" income had escaped assessment. Consequently, the reassessment was declared legally unsustainable and decided in favor of the assessee. .....

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