Income Tax Reassessment after Expiry of 4 years due to Non-Filing of GST by Supplier is Invalid: ITAT

The Income Tax Appellate Tribunal (ITAT) ruled that reassessment after the expiry of four years due to non-filing of GST by the supplier is invalid. The case involved the reassessment of income tax by the Revenue Department, challenging the non-filing of GST returns by the supplier. ITAT emphasized that GST compliance cannot be the sole basis for reopening assessments under the Income Tax Act. This decision highlights the importance of adhering to specific grounds for reassessment beyond the statutory limit. The ruling provides clarity on the relationship between GST and Income Tax assessments, safeguarding taxpayers' rights against arbitrary reassessment based solely on GST non-compliance.