Reopening of assessment on incorrect assumption is invalid

ITO Vs Champaklal Mathurbhai Mehta (ITAT Mumbai) ITAT Mumbai held that reopening of assessment was undertaken by AO without application of mind on complete incorrect assumption of fact that no return of income was filed for the relevant Assessment year and hence said reopening of assessment is invalid. Facts- Based on information, AO noted that during the year under consideration, the assessee had purchased immovable property to the tune of Rs.2,13,61,851/-. AO had a mistaken opinion that assessee had not filed his return for A.Y.2011-12. Accordingly, since there was financial transaction carr...