Darshan Lal Makhija Vs ITO (ITAT Delhi)
The appeal for Assessment Year 2017–18 arose from an order passed by the CIT(A)/NFAC, Delhi, in reassessment proceedings under sections 147 read with 144 of the Income-tax Act, 1961. The Tribunal first condoned a delay of 231 days in filing the appeal, holding that it was in the larger interest of justice. During the hearing, the assessee raised a primary legal objection challenging the validity of the reopening itself. It was pointed out that the notice issued under section 148A(b) by the Assessing Officer referred to information concerning transactions of another individual, namely “Sh. Sachin Kumar Achin Kumar,” and not the assessee. On examination of the record, the Tribunal noted that the Revenue could not dispute that both lower authorities had proceeded against the assessee on the basis of alleged transactions that did not relate to him. The Tribunal held that the reassessment was not sustainable in law, as no tangible material pertaining to the assessee had been considered by the authorities while initiating the reopening. Consequently, the reassessment proceedings, including the proposed addition of alleged cash deposits in the assessee’s hands, were quashed. All other issues raised in the appeal were rendered academic. The appeal was allowed, and the order was pronounced in open court on 24 December 2025.
