https://www.taxtmi.com/caselaws?id=462805 The ITAT Delhi quashed the reopening of assessment under section 147 for deemed dividend additions under section 2(22)(e). The tribunal found multiple fatal deficiencies in the AO's reasons for reopening: the AO demonstrated complete misunderstanding of facts by contradicting which company advanced loans to which, failed to digitally sign the reasons as required, referenced the long-omitted section 147(b), and provided undated reasons. These deficiencies reflected non-application of mind by the AO in forming belief that income escaped assessment. The competent authority's approval under section 151 was deemed mechanical as it failed to correct these obvious errors, also showing non-application of mind. Consequently, the assessment reopening was quashed due to procedural violations and lack of proper application of mind by both the AO and approving authority. en-us Wed, 16 Oct 2024 00:00:00 +0530 Wed, 16 Jul 2025 23:42:42 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=462805 The ITAT Delhi quashed the reopening of assessment under section 147 for deemed dividend additions under section 2(22)(e). The tribunal found multiple fatal deficiencies in the AO's reasons for reopening: the AO demonstrated complete misunderstanding of facts by contradicting which company advanced loans to which, failed to digitally sign the reasons as required, referenced the long-omitted section 147(b), and provided undated reasons. These deficiencies reflected non-application of mind by the AO in forming belief that income escaped assessment. The competent authority's approval under section 151 was deemed mechanical as it failed to correct these obvious errors, also showing non-application of mind. Consequently, the assessment reopening was quashed due to procedural violations and lack of proper application of mind by both the AO and approving authority. Case-Laws Income Tax Wed, 16 Oct 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=462805