Harish Kumar Singh Vs ITO (ITAT Delhi)
Reopening quashed: AO assumed non-filing despite return on record; reasons held factually incorrect; appeal partly allowed
In this appeal by Harish Kumar Singh for AY 2012-13, Tribunal examined the validity of assessment framed u/s 147 after reopening based on AIR information of cash deposits of ₹51.07 lakh. AO recorded reasons alleging that assessee was a “non-filer” & had not filed any return for the relevant year, obtained approval, issued notice u/s 148 & completed reassessment.
At the outset, Tribunal addressed a procedural objection regarding delay. It noted that the appeal was filed electronically on 30.05.2022 within limitation & the later physical filing on 27.06.2022 did not make it time-barred. The appeal was therefore treated as filed in time.
Assessee sought admission of additional grounds under Rule 11, urging that reopening was based on incorrect foundational facts & approval was granted mechanically without application of mind. Tribunal, relying on NTPC Ltd. (229 ITR 383), held that pure legal grounds going to the root of jurisdiction must be admitted.
Assessee highlighted that AO’s recorded reason—asserting non-filing of return—was factually wrong, since a valid return had been filed on 31.03.2013, with acknowledgment submitted before lower authorities. Tribunal noted that this factual position was undisputed. Relying on Delhi High Court’s judgment in Deepak Wadhwa vs ACIT (WP(C) 12551/2018), which held that reopening based on incorrect factual premise of non-filing is invalid, Tribunal reproduced the operative portion where the High Court quashed reassessment noticing that return had indeed been filed.
Applying the same principle, Tribunal held that reopening was vitiated because the very foundation—assumption of non-filing—was factually erroneous. Consequently, additional ground No.8 was allowed & the reassessment proceedings were quashed as invalid.
Other grounds on merits were kept open as academic.
Thus, the appeal was partly allowed, with reassessment annulled on jurisdictional defect.
FULL TEXT OF THE ORDER OF ITAT DELHI
