Reassessment based on usurpation of jurisdiction on non-existing jurisdiction is invalid

Dipti Mehta Vs ITO (ITAT Kolkata) Conclusion: When income which was the foundation on which he based his belief of escapement of income was absent /disappeared then AO’s very usurpation of jurisdiction was on non-existing jurisdictional fact which rendered his usurpation of jurisdiction to reopen the assessment legally untenable and so null in the eyes of law and therefore, the reassessment made by AO without jurisdiction was quashed. Held: In the present case, AO invoked jurisdiction for reopening the assessment on the ground that assessee had taken accommodation entries for loss of Rs. 2,7...