Om Prakash Vs ITO (ITAT Agra)
Reopening Quashed—AO Recorded Wrong Facts, Wrong Amounts & Even Wrong Name; Mechanical 151 Approval Invalid
The Assessee appealed against the NFAC order dated 10.12.2024 sustaining assessment u/s 144 r.w.s.147 dated 23.12.2018. The appeal was filed with a delay of 22 days, which the Tribunal condoned (page 1).
1. Reasons recorded based on completely incorrect facts
The AO reopened assessment alleging cash deposits of ₹28,26,470 (as per reasons) and ₹38,56,470 (as per assessment order). However, as seen from the bank statements (pp. 4–5, reproduced in order), the total credits for the entire period 1-1-2008 to 31-3-2012 were only ₹77,538, with just one cash deposit of ₹2,000.
Thus, the amounts mentioned in the reasons (₹28.26 lakh) and the figure in the assessment order (₹38.56 lakh) had no connection whatsoever with the bank account of the Assessee.
Page 4 of the order records that the AO:
- did not verify bank statements before reopening,
- mentioned the wrong address,
- did not mention the PAN, and
- even mentioned a different person’s name in the reasons.
The Tribunal held that the formation of belief u/s 147 was fundamentally flawed.
2. Approval u/s 151 granted mechanically
The approval form reproduced on page 3 shows that the PCIT merely signed off without noticing that:
