Komal Kumar Vs Assessment Unit (ITAT Delhi)
The Income Tax Appellate Tribunal, Delhi examined the validity of reassessment proceedings initiated for Assessment Year 2020–21 under Section 147 read with Section 144B of the Income-tax Act, 1961. The reassessment was initiated solely on the basis of alleged cash deposits amounting to ₹2.62 crore. However, in the final reassessment order dated 16 March 2025, the Assessing Officer did not make any addition in respect of the very reason recorded for reopening and instead proceeded to make additions relating to commission income and other issues. The Tribunal noted that when no addition is made on the ground forming the basis of reopening, the reassessment cannot be sustained. Relying on binding judicial precedents, the Tribunal held the reopening to be invalid and quashed the reassessment proceedings. Consequently, the assessee’s appeal was allowed.
FULL TEXT OF THE ORDER OF ITAT DELHI
This assessee’s appeal for Assessment Year 2020-21 arises against the Assessing Officer’s DIN & order No. ITBA/AST/S/147/2024-25/1074540022(1) dated 16.03.2025, in proceedings u/s 147 r.w.s. 144B of the Income Tax Act, 1961 (in short “the Act”).
2. Heard both the parties at length. Case file perused.
3. It transpires during the course of hearing that there arises the first and foremost legal issue of validity of the impugned reopening itself as the learned assessing authority had set into motion the impugned proceedings against the assessee regarding the sole reason of total cash deposits of Rs.2,62,30,808/- whereas his assessment framed on 16.03.2025 in question ended up in disallowing/adding commission income etc.
