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ITAT Delhi Quashes Four-Year Reopening of Share Sale Assessment

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Summary

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  • The ITAT Delhi has quashed the reopening of an income tax assessment for Sangeeta Sharma, stating it was invalid after four years without evidence of failure to disclose material facts.
  • The original assessment under Section 143(3) had already accepted her reported long-term capital loss from a share sale worth ₹9.73 crore.
  • The Revenue's attempt to reassess based on doubts about the transaction and cash deposits was deemed insufficient, as the original details were provided during scrutiny.
  • This ruling reinforces the importance of documented disclosures in tax assessments and limits the scope for reopening cases beyond the four-year threshold without clear justification.

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