Aquakiosk India Private Limited Vs ITO (ITAT Delhi)
The Income Tax Appellate Tribunal (ITAT), Delhi bench, has allowed the appeal of Aquakiosk India Private Limited, quashing a reassessment order and deleting an addition of Rs. 14,03,321/- made by the Assessing Officer (AO) for Assessment Year 2012-13. The Tribunal’s decision, pronounced on June 27, 2025, primarily hinged on the procedural flaw of the AO failing to provide reasons for initiating reassessment proceedings and the substantive finding that the alleged unexplained investments were legitimate “switch-outs” within mutual funds, duly disclosed in the company’s financial statements.
Case Background: Dual PANs and Reassessment
The case originated when Aquakiosk India Private Limited, despite having filed its income tax return (ITR) for AY 2012-13 on September 28, 2012, under PAN AACCA8913H (which was processed under Section 143(1)), became subject to reassessment proceedings. The trigger for the reassessment, as per the AO, was information indicating that the company, using a different PAN (AADCA5448C), had invested in mutual funds exceeding Rs. 2 lakhs during the year and was treated as a non-filer for that PAN.
Consequently, a notice under Section 148 of the Income-tax Act, 1961, was issued. Despite various notices under Section 142(1) being sent, the assessee’s alleged non-compliance led the AO to complete an ex-parte assessment under Section 144 read with Section 147 of the Act on November 27, 2019, adding Rs. 14,03,320/- to the company’s income as unexplained investment under Section 69B. The Commissioner of Income Tax (Appeals) [CIT(A)] subsequently dismissed the assessee’s appeal, leading to the present appeal before the ITAT.
