ITAT · Kolkata Bench2024§148
R.S. Darshan Singh Motor Car Finance v. ITO · ITAT Kolkata on §148: unverified source information voids the notice
Can a §148 notice rest on information the AO never verified?
No. Where the AO fails to verify the authenticity of the triggering information, the §148 notice and consequent assessment are quashed.
Reviewed by Smt. Saseekala Nair, IRS (R), Principal Chief Commissioner of Income Tax (Retd.) · Published 2026-07-07
Facts in brief
- A reopening notice under §148 issued on third-party information.
- The Assessing Officer did not independently verify the authenticity of that information before issuing the notice.
Issue before the bench
Whether unverified source information constitutes valid material for reopening.
Held
The Kolkata Bench, by order dated 2 May 2024, quashed the notice. Verification of the information is a precondition, not a formality.
Practitioner takeaway
Demand the underlying information and the AO's verification trail in objections; 'information received' without inquiry is not 'information suggesting' escapement.
More on this topic: Section 148 & 148A: Reassessment case law · Need this drafted? Reassessment & Section 148 Support for CA Firms