Mumbai ITAT Quashes ₹1.24 Crore Bitcoin Reassessment Over Improper Reopening Sanction

\nA Mumbai bench of the Income Tax Appellate Tribunal has cancelled a reassessment that had taxed ₹1.24 crore from a bitcoin sale after ruling that the sanction to reopen the assessment for AY 2018-19 was issued by the wrong authority under Section 151.

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  • Case backdrop: reassessment linked to cryptocurrency sale proceeds

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  • Key finding: sanction under Section 151 was not accorded by the proper authority

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  • Outcome: no tax addition on the bitcoin sale amount

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  • Broader takeaway: procedural correctness in reassessment approvals is essential

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The ruling underscores that even high-value cryptocurrency transactions must comply with the statutory requirement for reopening, failing which reassessments can be struck down.

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