The Delhi bench of the Income Tax Appellate Tribunal (ITAT) has held that the re-assessment under section 148 of the Income Tax Act without application of mind is not valid.
In the instant case, the Assessing Officer reopened the assessment against the assessee by finding that as per AIR information the assessee sold/ purchase an immovable property of Rs 10395000/- as on 30/05/2009 and the same was not assessed to tax.
The Tribunal found that the statement that the assessee is not assessed to tax is factually incorrect as the assessee has filed the return of income on 29.09.2010 electronically.
After considering the facts of the case, the ITAT held that the reasons recorded for reopening of the assessment would lead to only one conclusion that the reasons recorded for reopening the assessment are devoid of any application of mind.
“In our considered opinion, such reopening cannot be upheld. We, accordingly, quash the notice u/s 148 of the Act thereby quashing the assessment order so framed,” the tribunal said.
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