Re-opening o on “borrowed satisfaction” without fresh material or a live link to the taxpayer’s transactions is nothing but a “fishing inquiry.” – Supreme Court Dismisses Department’s Appeal
In a significant ruling, the Supreme Court of India dismissed the Special Leave Petition (Diary No. 16518/2025) filed by the Deputy Commissioner of Income Tax, Ahmedabad, on 28th April 2025. The case, arising from the Gujarat High Court’s judgment dated 11th June 2024 (SCA No. 4840/2022), for the Assessment Year 2014-15.
The Gujarat High Court had quashed the notice, finding that the reopening of the assessment relied on “borrowed satisfaction” without fresh material or a live link to the taxpayer’s transactions, labeling it a “fishing inquiry.”
The Supreme Court, exercising its jurisdiction under Article 136, found no grounds for interference, upholding the High Court’s decision.
The copy of the order is as under:
