KAZI MOHAMMAD ASIF KHAN,RAIPUR vs. THE INCOME TAX OFFICER, WARD 3(1), RAIPUR

ITA 606/RPR/2026Status: DisposedITAT Raipur07 October 2026AY 2016-178 pages
AI SummaryAllowed

What were the facts?

The assessee, Kazi Mohammad Asif Khan, an individual engaged in the retail business of dairy and agriculture products under the name M/s. Qazi Traders, is in appeal against the order of the Ld. CIT(Appeals)/NFAC, Delhi dated 30.06.2026 for the Assessment Year 2016-17. The assessee had not filed the original return of income for the said assessment year under Section 139 of the Income-tax Act, 1961. The case was selected for reopening under the 'Risk Management Strategy (RMS)' based on information received from the Sub-Registrar. The dispute pertains to the assessment year 2016-17.

What did the Tribunal hold?

The Tribunal held that the reopening of assessment under Section 147 of the Income-tax Act, 1961, was not valid in this case. The primary reasoning was that the assessee had not filed the original return of income under Section 139 for the Assessment Year 2016-17. Consequently, the conditions precedent for invoking Section 147, which typically requires a belief formed by the Assessing Officer that income has escaped assessment based on tangible material, were not satisfied. The Tribunal found that the information received from the Sub-Registrar, which triggered the RMS selection, did not, in itself, constitute sufficient material to form a valid belief of escapement of income in the absence of a filed return. Therefore, the assessment framed under Section 147 was quashed. The operative direction was the deletion of the additions made.

What were the issues?

1. Whether the reopening of assessment under Section 147 of the Income-tax Act, 1961, is valid when the assessee had not filed the original return of income under Section 139 for the Assessment Year 2016-17, based on information received from the Sub-Registrar under the 'Risk Management Strategy (RMS)'? Assessee's Contention: The assessee argues that the reopening is not valid as the conditions for reopening under Section 147 are not met, particularly concerning the existence of tangible material to form a belief that income has escaped assessment. The reliance on information from the Sub-Registrar under RMS is questioned. Revenue's Contention: The revenue contends that the reopening is justified as information received indicated potential escapement of income, necessitating an inquiry and assessment under Section 147. The RMS selection process is considered a valid trigger for reopening.

Which sections of the Income-tax Act were involved?

Section 139,Section 147

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, RAIPUR BENCH “DB”, RAIPUR

Before: SHRI PARTHA SARATHI CHAUDHURY & SHRI AVDHESH KUMAR MISHRA

For Respondent: Shri Rituparna Namdeo, CIT-DR
Hearing: 05.10.2026Pronounced: 07.10.2026

PER PARTHA SARATHI CHAUDHURY, JM:

The present appeal preferred by the assessee emanates from the order of the Ld.CIT(Appeals)/NFAC, Delhi dated 30.06.2026 for the assessment year 2016-17 as per the grounds of appeal on record.

2.

Brief facts in this case are as follows: “The appellant, Kazi Mohammad Asif Khan, is an individual engaged in retail business of dairy and agriculture products under the name M/s. Qazi Traders. For the

The order continues below.

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