Completed assessments cannot be reopened without new material or grounds

Akshita Jindal Vs ITO (Delhi High Court)

The case of Akshita Jindal Vs ITO before the Delhi High Court delves into the validity of proceedings initiated under Section 148 of the Income Tax Act, 1961. The petitioner challenges the notice and subsequent orders for reassessment for the Assessment Year 2015-16.

The petitioner, in response to a notice issued on 31 March 2021, filed her Income Tax Return (ITR) on 14 January 2022. Despite various responses to subsequent notices under Section 142(1) of the Act, an assessment order was passed on 31 March 2022, adding an amount to her income on alleged accommodation entry through penny stock of Achal Investment Ltd.

Notably, despite the concluded assessment, a show cause notice under Section 148A(b) was issued on 1 June 2022, followed by an order under Section 148A(d) on 16 July 2022, alleging further escapement of income. The petitioner contends that the reassessment is unjustified as the alleged escaped income was already assessed.

The petitioner argues that the assessing officer (AO) erred in assuming jurisdiction under Section 147 of the Act for the reassessment. The petitioner maintains that the impugned notices and order lack legal and procedural validity.

Conclusion

The Delhi High Court, after examining the facts and legal arguments, quashes the impugned notices and order. The court emphasizes that the procedure outlined in the decision of Ashish Agarwal (supra) is not applicable to concluded assessment proceedings. The judgment affirms that completed assessments cannot be reopened without new material or grounds.