Jignesh Janu Abgul Vs ITO (ITAT Mumbai)
In Jignesh Janu Abgul (AY 2016-17), reassessment proceedings initiated u/s 147 were challenged after the Bombay High Court quashed the notice u/s 148 on the ground of improper sanction under sec.151, following the ruling in Siemens Financial Services Pvt. Ltd.. Despite the High Court’s decision being placed before CIT(A), the matter was merely set aside for verification instead of granting relief.
The ITAT held that the jurisdictional High Court’s order was binding and once the reopening notice was declared invalid, the AO lacked jurisdiction ab initio. Consequently, the reassessment order as well as the appellate order lost their legal foundation and were liable to be quashed. The Tribunal therefore annulled the assessment and allowed the assessee’s appeal.
FULL TEXT OF THE ORDER OF ITAT MUMBAI
The instant appeal of the assessee filed against the order of the NFAC, Delhi [for brevity ‘the ld. CIT(A)], order passed under section 250 of the Income Tax Act 1961 (for brevity ‘the Act’) for assessment year 2016-17, date of order 26.11.2025. The impugned order emanated from the order of the ld. Assessment Unit Income Tax Department (for brevity the ‘Ld. AO’) order passed under section 147 r.w.s. 144 r.w.s. 144B of the Act dated of order 29.05.2023.
