Anita Jha Vs DCIT (ITAT Delhi)
Delhi ITAT quashed the reassessment proceedings initiated against Anita Jha for AY 2015–16 on a jurisdictional ground. The reassessment u/s 148 was held to be void ab initio as the AO failed to dispose of the assessee’s objections to reopening before completing the assessment, which is a mandatory requirement.
Assessee filed the original return on 31.10.2015. Notice u/s 148 was issued on 31.03.2021 & served. Assessee sought & received reasons for reopening, & filed detailed objections on 22.03.2022 via e-portal. AO did not dispose of these objections before completing the reassessment on 29.03.2022. Instead, the AO issued a disposal letter only later on 07.03.2024, during appellate proceedings.
Citing the Supreme Court ruling in CIT v. Kelvinator of India Ltd. (320 ITR 561), the Tribunal reiterated that the AO must dispose of objections raised by the assessee before finalizing the reassessment. AO’s act of addressing objections after passing the assessment order was seen as an attempt to cure a jurisdictional defect post-facto, which is not permissible in law. Hence, the reassessment order was held to be bad in law & liable to be quashed. ITAT allowed the appeal on the legal ground of non-disposal of objections prior to reassessment, without adjudicating on the merits of the case
