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Facts
The assessee appealed against reassessment proceedings initiated under Section 147 r.w.s. 144 r.w.s. 144B of the Income-tax Act. The reopening was based on allegations of substantial cash deposits, but the assessment order admitted a significantly lower amount of actual cash deposits.
Held
The Tribunal found the reopening unsustainable due to a lack of application of mind and absence of tangible material. The significant discrepancy between the alleged and admitted cash deposit amounts was a critical factor leading to this decision.
Key Issues
Validity of reassessment proceedings initiated under Section 147 on grounds of alleged cash deposits when the admitted amount was significantly lower, and the application of the "new" scheme of reassessment.
Sections Cited
147, 144, 144B, 148A
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Income Tax Appellate Tribunal, DELHI BENCH: “SMC” NEW DELHI
Before: SHRI SATBEER SINGH GODARA
ORDER This assessee’s appeal for assessment year 2015-16, arises against the Commissioner of Income Tax (Appeals)/National Faceless Appeal Centre [in short, the “CIT(A)/NFAC”], Delhi’s DIN & Order No: ITBA/NFAC/S/250/2025-26/1081652502(1), dated 10.10.2025 involving proceedings under section 147 r.w.s.
144 r.w.s. 144B of the Income-tax Act, 1961 (hereinafter referred to as ‘the Act’).
Heard both the parties. Case file perused.
Coming to the first and foremost issue of validity of reopening itself, it emerges from the perusal of case record that the learned lower authorities’ had set into motion section 148A proceedings against the assessee alleging cash deposits of Rs.1,93,00,000/-, whereas, they have admitted actual cash deposits amounting to Rs.4,42,500/- only in assessment order dated 28.02.2024.
This being the clinching factual position, the Revenue could hardly dispute that the impugned reopening initiated under “new” scheme (on or after 01.04.2021) itself is not sustainable going by the above total non-application of mind and in absence of any tangible material. Quashed accordingly.
The assessee’s appeal is allowed.
Order pronounced in the open court on 27th January, 2026.