Mohammed Iqbal Khan Vs ACIT (ITAT Mumbai)
The Mumbai ITAT held that reassessment proceedings initiated under Sections 147/148 are invalid where based solely on re-examination of already scrutinised facts, without any fresh tangible material.
In this case, the Assessing Officer reopened the assessment based on information from the Investigation Wing regarding bank transactions. However, the Tribunal noted that the very same bank account and transactions had already been examined during the original assessment under Section 143(3), where full details were furnished by the assessee.
The ITAT observed that the reasons recorded for reopening did not bring any new material on record and merely sought to revisit the same facts, which amounts to a change of opinion-impermissible under settled law laid down in Kelvinator of India Ltd.
It was further noted that the CIT(A) failed to adjudicate the jurisdictional ground and decided only on merits, which is contrary to legal principles.
Accordingly, the Tribunal quashed the reopening and set aside the reassessment order, rendering the additions infructuous and allowing the assessee’s appeal.
FULL TEXT OF THE ORDER OF ITAT MUMBAI
The instant appeal of the assessee filed against the order of the NFAC, Delhi [for brevity the “Ld. CIT(A)”], order passed under section 250 of the Income Tax Act 1961 (for brevity ‘the Act’), for Assessment Year 2012-13, date of order 26.06.2025. The impugned order emanated from the order of the Ld. Assistant Commissioner of Income Tax Circle 22(2), Mumbai (for brevity, the ‘Ld. AO’) order passed under section 143(3) r.w.s. 147 of the Act, date of order 30.12.2019.
