Rajni Dua Vs ITO (ITAT Delhi)
Summary: The appeal was preferred by Rajni Dua against the order dated 21.11.2025 passed by the Commissioner of Income Tax (Appeals), Delhi under section 250 of the Income-tax Act, 1961, whereby the appeal of the appellant was dismissed. The appeal concerned Assessment Year 2005-06.
The return of income was filed on 31.10.2005 declaring total income of Rs.10,25,309/-. Subsequently, the Assessing Officer noticed differences between the amounts of trade discount and cash discount debited in the Profit & Loss account and the amounts appearing in the respective ledger accounts. The Assessing Officer also noticed that bonus of Rs.1,66,397/- debited in the Profit & Loss account had not actually been paid till the date of filing of the return. On this basis, the Assessing Officer formed the view that income of Rs.1,51,11,690/- had escaped assessment and initiated reassessment proceedings under section 147 by issuing notice under section 148 dated 22.03.2012.
The reassessment was completed on 25.03.2013 under sections 147/143(3), assessing total income at Rs.1,62,27,150/- after making an addition of Rs.1,51,11,690/- on account of the differences in trade discount, cash discount and bonus allegedly not paid before filing of the return.
Before the Tribunal, the learned Authorised Representative submitted that the reassessment deserved to be quashed because it had been initiated solely on the basis of an objection raised by the Revenue audit party and represented a review or re-appraisal of the same assessment records, without any fresh tangible material coming into the possession of the Assessing Officer after the original assessment. It was submitted that the original assessment had been completed on 16.08.2011 under sections 143(3)/154, assessing income at Rs.11,15,455/-.
