Reopening of assessment u/s 147 non application of mind by approval authority in information submitted by investigation wing

. VIJENDER NATH GUPTA VS. INCOME-TAX OFFICER, WARD-34(5), NEW DELHI (ITAT DELHI-2025)

The issue was related to the reopening of assessment u/s 147 - no valid approval granted by the competent authority u/s 151(1).

The fact of the assessee filing the return and that it was processed u/s 143(1) has not at all been taken cognizance of by the Ld. AO and he merely relied whatever information reached through the Investigation Wing and how it was examined. It appears that the AO has merely reproduced the facts coming up from the Investigation Wing and added his remark of escapement of income only . It is coming up from the reopening reasons that the ITO (Inv.) had called for all the relevant information with regard to credit and debit entries in the bank accounts which were filed before the ITO (Inv.). However, not a word of the same has been examined by the ld. AO to show as to if this information has been part of the assessee’s return. The aforesaid also established that authority granting the approval has also not entered into the facts of the case by application of mind. The non application of mind to information to record a live link of information with the escapement of income thus not being there the reasons for reopening suffer fatal defect and thus the appeal is allowed.