INCOME TA ACT, 1961

Section 147

Reassessment - Reopening based on incorrect facts - Validity of -

AO issued notice under section 148 on the ground that assessee neither filed its return of income nor it was audited. Assessee contended that it had filed its return of income for assessment year 2010-11 on 13-12-2013. CIT(A) rejected the submissions of the assessee.Held: The case of the assessee was reopened under section 147 of the Act with the observation that assessee had not filed its return of income. However, the AO himself observed in his order that assessee had, in fact, filed its return of income on 13-12-2013. From the above it was also clear that the reason for reopening itself fails in this case, prima facie the assessment was reopened with the wrong reasoning that assessee had not filed its return of income by merely observing from Income Tax Portal. It was fact on record that assessee has filed its return of income and AO had accepted the same. On this count itself, the assessment made by the AO with wrong reasoning deserves to be quashed.

REFERRED :

FAVOUR : In assessee's favour.

A.Y. : 2010-11 & 2011-12

INCOME TAX ACT, 1961

Section 11

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