Shalini Chhabra Vs ITO (ITAT Delhi)
Change of Goalpost’ Fatal to Reassessment: ITAT Quashes Reopening Where Allegation Shifted from Share Investment to Bogus Purchases
The Delhi ITAT allowed the assessee’s appeal and quashed the reassessment for AY 2018-19, holding that the entire reopening was vitiated due to a fundamental change in the basis of proceedings. Initially, the notice under Section 148A(b) alleged that the assessee had made unexplained investment in equity shares of ₹86.73 lakh. However, in the order under Section 148A(d) and the final reassessment order, the allegation was shifted to bogus purchases from a GST-defaulting party, without any reference to share investments.
The Tribunal held that reopening must strictly proceed on the very “information” forming the basis of initiation, and shifting the charge mid-way amounts to a “change of goalpost,” which is impermissible in law. Relying on a series of High Court decisions including Catchy Prop Build Pvt. Ltd., Aadi India Pvt. Ltd., Usha Rani Girdhar, ATS Infrastructure Ltd., and others, it was held that such divergence between notice and assessment vitiates the entire proceedings.
Since the final addition was based on an altogether different allegation from what was communicated at the pre-notice stage, the reassessment was held to be without jurisdiction and void ab initio. Accordingly, the impugned assessment was quashed in full and the assessee’s appeal was allowed.
FULL TEXT OF THE ORDER OF ITAT DELHI
This appeal is preferred by the assessee against the order dated 19.02.2025 of the Ld. National Faceless Appeal Centre (NFAC) Delhi (hereinafter referred as Ld. First Appellate Authority or in short Ld. ‘FAA’) in DIN & Order No : ITBA/NFAC/S/250/2024-25/1073446259(1) arising out of the assessment order dated 16.03.2023 u/s 147 of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) passed by the Assessment Unit, Income Tax Department, Delhi for AY: 2018-19.
