ITO Vs Ashish Gupta (ITAT Delhi)
SIn a significant ruling concerning income tax reassessment procedures, the Income Tax Appellate Tribunal (ITAT) Delhi Bench has dismissed an appeal filed by the Income Tax Officer (ITO) against Ashish Gupta, upholding the National Faceless Appeal Centre’s (NFAC) decision to quash reassessment proceedings for the Assessment Year 2015-16. The Tribunal’s order, pronounced on June 30, 2025, underscored the mandatory nature of issuing notices under Section 143(2) of the Income-tax Act, 1961, and furnishing reasons for reopening assessments, deeming their absence as fatal jurisdictional defects.
The case originated from the Assessee, Ashish Gupta, who had initially filed his income tax return for AY 2015-16 on September 15, 2015, declaring a taxable income of Rs. 9,42,790. This original return was processed and accepted under Section 143(1) of the Act. However, subsequent to this, the Deputy Director of Income Tax (DDIT) Investigation provided information that led the Assessing Officer (AO) to initiate reassessment proceedings.
A notice under Section 148 of the Act was issued to the Assessee, prompting a response on May 25, 2021, where the Assessee filed a new return declaring the same income as originally submitted. Crucially, this return was not e-verified at the time of filing. The AO subsequently treated this return as “invalid and non-est” due to the lack of e-verification.
