Gopal Anil Kumar Vs DCIT (ITAT Bangalore)
Reassessment Quashed – Mechanical Approval U/s 151 Based on Wrong Fact that Assessee Was a Non-Filer
The assessee, a civil contractor executing works for government agencies such as BBMP and KRIDL, filed his return for AY 2018-19 declaring income of ₹83.45 lakh. After a search u/s 132 in December 2021, the AO reopened the assessment u/s 147 and completed reassessment determining total income at ₹3.32 crore by making additions aggregating to ₹2.48 crore including disallowance u/s 37 and additions u/s 68.
The assessee challenged the reassessment contending that the approval granted by the PCIT u/s 151 for reopening was based on an incorrect assumption that the assessee was a “non-filer”, whereas the return had actually been filed on 16-07-2018. The assessee argued that such approval was mechanical and without application of mind.
The Tribunal observed that even the assessment order itself acknowledged that the assessee had filed the return. Thus, the very basis on which sanction u/s 151 was granted—treating the assessee as a non-filer—was factually incorrect. The Tribunal held that sanction u/s 151 is a jurisdictional safeguard requiring objective satisfaction and application of mind, and cannot be granted mechanically.
Since the approval for reopening was founded on a wrong factual premise, the sanction was held invalid. Consequently, the notice issued u/s 148 and the reassessment order passed u/s 147 were quashed as void in law.
FULL TEXT OF THE ORDER OF ITAT BANGALORE
This Appeal at the instance of the assessee is directed against the order of ld. CIT(A)-11, Bengaluru dated 10.02.2025 vide DIN: ITBA/APL/M/250/2024-25/1073090605 (1) passed u/s 250 of the Income Tax Act, 1961 (in short “The Act”) for the AY 2018-19.
