Reassessment Based on wrong and incorrect facts is bad in law

Keshav Saran Vs ACIT (ITAT Delhi)

In the present case, the assessee has actually filed the return of income and the Assessing Officer in the satisfaction note noted that the assessee has not filed return of income. Thus, we safely presume that the Assessing Officer has initiated reassessment proceedings by mentioning wrong and incorrect facts of the case and on the sole premise that the assessee has not filed return of income for the A.Y. 2009-10. Therefore, we safely presume that the Assessing Officer has initiated the reassessment proceedings and passed reassessment order on the basis of incorrect facts and without application of mind. Therefore, we are compelled to hold that the action of the Assessing Officer and impugned reassessment order are bad in law and unsustainable.

FULL TEXT OF THE ORDER OF ITAT DELHI

The assessee filed an application for admission of additional ground No. 17, which reads as under :

Ground No.17

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