Rohit Manchanda Vs ITO (ITAT Delhi)
ITAT Delhi Quashes Reassessment – Non-Service of Sec 148 Notice Factually Incorrect Reasons Render Proceedings Void
In Rohit Manchanda vs ITO (AY 2012-13), the ITAT Delhi allowed the assessee’s appeal and annulled reassessment proceedings holding them void ab initio. The AO had reopened the case based on AIR information alleging non-disclosure of capital gains from property sale; however, the Tribunal found that the assessee had already filed a regular return declaring the transaction and claiming exemption u/s 54.
The ITAT observed that notice u/s 148 was never properly served on the assessee despite the department having updated address and PAN details, which is a mandatory jurisdictional requirement. Further, reopening was initiated on factually incorrect assumptions that no PAN/return existed, and even beyond the permissible six-year period. Since jurisdictional defects existed and there was no escapement of income, the reassessment was held invalid and the appeal was allowed.
FULL TEXT OF THE ORDER OF ITAT DELHI
1. This appeal is filed by the assessee against the order of Ld. Commissioner of Income Tax (Appeals)/National Faceless Appeal Centre (NFAC), Delhi (hereinafter referred to ‘ld. CIT(A)’) dated 18.08.2025 for AY 2012-13.
2. Brief facts of the case are, the Assessing Officer issued notice u/s 148 of the Income Tax Act, 1961 (in short ‘Act’) on the basis of information available with him that assessee had sold an immovable property for total consideration of Rs.1.83 crores during the financial year 2011-12 related to assessment year 2012-13 on the basis of Non-PAN based AIR information.
