Smt Seema Swami Vs ACIT (ITAT Delhi)
Income Tax Appellate Tribunal (ITAT) Delhi Bench has quashed reassessment proceedings initiated against Smt. Seema Swami for the Assessment Year 2008-09, citing an invalid assumption of jurisdiction by the Assessing Officer (AO). The Tribunal ruled that the AO failed to demonstrate the existence of tangible material to form a “reason to believe” that income had escaped assessment, which is a prerequisite for reopening a completed assessment.
The case involved Smt. Seema Swami, legal heir to her deceased husband, Shri Manoj Kumar Swamy, a Chartered Accountant and CFO of IHHR Hospitality Pvt. Ltd. The original return for AY 2008-09, filed by Shri Manoj Kumar Swamy, declared an income primarily from salary and short-term capital gains. The assessment was completed under Section 143(3) of the Income-tax Act, 1961, on December 28, 2010, and accepted by the assessee.
Reassessment Initiation and Assessee’s Challenge
Subsequently, on May 13, 2011, the AO issued a notice under Section 148 of the Act, seeking to reopen the assessment in the name of Smt. Seema Swami. The assessee’s representative responded, requesting the reasons for reopening. The AO’s stated reasons indicated a belief that a gain of Rs. 6.80 crores from the sale of agricultural land by the assessee had escaped assessment.
