AO incorrectly Reopened Assessment on Ground of Sale Consideration of IP when same was disclosed in ITR

AO incorrectly Reopened Assessment on Ground of Sale Consideration of IP when same was disclosed in ITR Writ application filed to challenge the impugned notice u/s. 148, dated 31.03.2021 seeking to reopen the assessment for the A. Y. 2016-17 under Section 147 of the Act.

Facts 

• Assistant Commissioner of Income Tax issued notice on  31st March 2021 seeking to reopen the assessment for the A. Y. 2016-17 under Section 147 of the Act, essentially on the ground that the assessee failed to offer an amount of Rs.52 Lakh for taxation while filing return of income for the year under consideration. The amount, which the Revenue is talking about, is the amount said to have been received by the assessee in connection with sale of a property. 
•  In the reasons assigned by the Assessing Officer, it has been stated that the assessee had not shown the sale consideration of Rs.52 Lakh and thereby had failed to offer the same for tax in the return of income filed for the year under consideration. 
• The assessee filed his objections vide letter dated 27th July 2021 pointing out that the reasons assigned for the reopening is factually incorrect. 
• The objections raised by the assessee came to be disposed of by the Assessing Officer vide his order dated 16th November 2021.

Judgment 

Mr. Justice stated that reasons assigned by the Assessing Officer for reopening the assessment for the relevant year are factually incorrect. Factually there is no foundation for the Revenue to reopen the assessment on the ground as alleged in the reasons assigned. Therefore,  The impugned notice dated 31st March 2021 for the A.Y. 2016-17 is hereby quashed and set aside. To Read Judgement Download PDF Given Below: