Doriswamy Gopi Vs ITO (ITAT Bangalore)
Reopening Quashed for Wrong Assumption That No Return Was Filed — Section 292B Cannot Cure Jurisdictional Defect
The Bangalore ITAT (SMC Bench) quashed the reassessment for AY 2017-18 holding that the reopening under section 147 was initiated on a patently incorrect assumption of fact—that the assessee had not filed a return of income—when, in fact, the return had been filed on 18.11.2017. The Tribunal noted that this incorrect assumption was recorded twice in the reasons and could not be brushed aside as a typographical error. Relying on Sagar Enterprises v. DCIT (Guj HC) and Shri Ashwin S. Mehta v. DCIT (Mumbai ITAT), the Tribunal held that reopening based on a wrong factual premise vitiates the “reason to believe,” rendering the assumption of jurisdiction invalid. It further ruled that section 292B cannot cure such a foundational/jurisdictional defect, and subsequent acknowledgment during reassessment that a return existed cannot retrospectively validate the reopening. Consequently, the reassessment was set aside and other grounds on merits were rendered infructuous
FULL TEXT OF THE ORDER OF ITAT BANGALORE
This is an appeal filed by the assessee against the order passed by the NFAC, Delhi vide order dated 18/07/2025 for the assessment year 2017-18.
