Delhi ITAT grants relief on long reassessment delay and wipes out ₹11 lakh addition
The Delhi bench of the Income Tax Appellate Tribunal (ITAT) has condoned a lengthy delay of 2,073 days in serving a reassessment notice, after the taxpayer asserted that reassessment notices had been sent to an old address on record.
In the ruling, the tribunal accepted the taxpayer’s address-change explanation and held that the delay would not merit denial of the proceedings, allowing the reassessment process to advance despite the lapse.
Separately, ITAT also deleted an ₹11 lakh addition that had been added to the taxpayer’s income, after the taxpayer explained that the cash deposits were linked to proceeds from a property sale and to prior savings.
- Delay in notice: reassessment procedures allowed to proceed despite a 2,073-day gap, based on address issues.
- Tax adjustment: ₹11 lakh addition set aside following explanation anchored in property sale proceeds and existing savings.
- Tribunal emphasis: importance of correct address records and robust documentation for cash transactions.
