#reopening of assessment

The tribunal held that a section 148 notice dated 12-April-2023 was time-barred under section 149(1)(a) because the income escaping assessment was below Rs 50 lakh, and therefore quashed the assessment disallowing the claimed deduction under 80GGC for a bogus political donation. The ruling underscores that reopening notices beyond three years are invalid when the escaped income does not exceed the Rs 50 lakh threshold.

The ITAT Delhi has ruled that the Income Tax Department cannot reopen an assessment solely on the basis of unreported cash deposits if no addition is made against those deposits in the original assessment. This sets a critical precedent: mere non-filing of return coupled with large cash inflows is insufficient grounds for reopening - the revenue must demonstrate a tangible income addition. Taxpayers and practitioners now have clear protection against speculative reassessments based on deposit volume alone.

ITAT Ahmedabad rules that reassessment notices u/s 148 issued beyond the limitation period for escaped income below ₹50 lakh are invalid, setting aside the assessment order and remanding the case for fresh consideration. The tribunal emphasized procedural fairness, requiring the AO to provide recorded reasons and allow the assessee to substantiate capital gains computation.

ITAT Kolkata rules that reassessment under Section 148 of the IT Act is invalid if the notice is issued before formal communication of sanction under Section 151. The ruling reinforces strict procedural compliance, impacting tax authorities and assessees in reopening cases.

ITAT Kolkata ruled that reopening an assessment under Section 148 of the Income Tax Act without independent application of mind or corroborative evidence is void. The tribunal quashed the reassessment, emphasizing that reliance on a third-party report without verification breaches principles of natural justice, setting a precedent for taxpayers facing mechanical reassessment proceedings.

The ITAT Delhi has ruled that assessments under Section 153C can only reopen income for six years preceding the date of the satisfaction note, not the search operation. This clarifies jurisdictional limits for non-searched persons and prevents retrospective expansion of assessments beyond the statutory window, offering critical relief to taxpayers caught in delayed post-search proceedings.

ITAT Delhi quashes reassessment where notice under Section 148A(b) cited one set of entities, but addition was made on unrelated purchases. Key precedent on procedural fairness.