Mechanical Approval and Erroneous Facts: ITAT quashes Reassessment

Nikita Mahajan Vs ITO (ITAT Delhi). Income Tax Appellate Tribunal (ITAT) Delhi recently ruled in favor of the assessee, Nikita Mahajan, in a case against the Income Tax Officer (ITO). The appeal challenged the First Appellate order dated 12.06.2024, which arose from an assessment order dated 30.03.2022, related to the assessment year 2016-17. The core issue was the legitimacy of the reassessment initiated under Section 147 of the Income Tax Act, 1961, and additions made towards Long Term Capital Gain (LTCG) on the sale of shares. The ITAT’s decision centered on two critical flaws in the ...