INCOME TAX ACT, 1961

Section 147

Reassessment - Validity - Reopening of assessment based on wrong facts -

AO reopened assessment on the reasoning that as per ITD System and AIR Information, assessee had deposited cash of Rs. 21,10,000 in Bank Account maintained with Punjab and Sind Bank during the relevant assessment year, however, assessee had not filed his IT Return for the year and, therefore, source of cash deposits made by him could not be examined and verified. Held: Assessee had in fact filed her return of income for concerned assessment year on 25-7-2011. Therefore, AO had recorded wrong facts while recording reasons that assessee had not filed return of income. Further, approving authority had also given her approval in a mechanical manner and without independent application of mind, especially when assessee has filed her return of income and reopening was made on the ground that no return was filed. Therefore, reopening of the assessment on incorrect or wrong facts was a nullity.

Relied:ACIT v. Asis Plywood (P) Ltd. vide (ITA No. 2144/DEL/2015), date 28-1-2019 : 2019 TaxPub(DT) 2091 (Del-Trib), Krissh Impex (P) Ltd. v. ITO, vide ITA No. 7610/DEL/2019, date 29-10-2020 : 2021 TaxPub(DT) 202 (Del-Trib), Deepak Gupta & Sons v. ITO, vide ITA No. 8748/DEL/2019, date 9-11-2020, Ankita A. Choksey v. ITO, vide W.P. No. 3344/DEL/2018, date 10-1-2019 (Bom HC) : 2019 TaxPub(DT) 723 (Bom-HC) and Pr. CIT v. RMG Polyvinyl (I) Ltd. vide ITA No. 19/2017, date 7-7-2017 (Del HC) : (2017) 83 Taxmann.com 348 (Del-HC) : (2017) 396 ITR 5 (Del-HC) : 2017 TaxPub(DT) 2034 (Del-HC).

REFERRED :

FAVOUR : In assessee's favour.

A.Y. : 2011-12

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