Dinesh Babu Saxena Vs ITO (ITAT Delhi)
AO Claimed No Return Was Filed, Assessee Proved It Was- Reopening on Wrong Facts—Delhi ITAT Quashes 147 Assessment
Appeal was delayed by 108 days. Assessee filed affidavit & medical records. Tribunal held that delay was bona fide & condoned it. On merits, Assessee challenged validity of reopening u/s 147 r.w.s. 148. AO reopened assessment on the premise that no return of income for AY 2008-09 was filed & that investment of Rs.63,00,000/- in property was unexplained. Assessee demonstrated that he had filed return on 26.12.2008 disclosing income of Rs.3,88,845/-. Acknowledgment copy was placed in paper book. The reasons recorded by AO categorically stated that “return of income had not been filed”, which stands contradicted by AO himself in assessment order dated 18.03.2016 where he admitted that return was filed.
Tribunal held that reasons to believe must be correct & based on existing facts, and cannot be repaired or supplemented later. Since reopening was based on a wrong assumption of fact, the very foundation of s.147 proceedings failed. Consequently, the notice u/s 148, the reopening & the reassessment completed u/s 144 r.w.s. 147 were all vitiated. Tribunal therefore quashed the reassessment order in entirety.
