ITAT quashes Reassessment Order u/s 147 due to Lack of Jurisdiction and Procedural Defects

The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) quashed a reassessment order under Section 147 of the Income Tax Act, 1961, due to lack of jurisdiction and procedural defects. The case involved Montreaux Resorts Pvt. Ltd., which challenged the National Faceless Appeal Centre’s (NFAC) order for the assessment year 2007-08. The ITAT found that the Assessing Officer (AO) had not followed the proper procedures, including failing to obtain necessary approvals and not adhering to the prescribed timelines. The tribunal concluded that these defects were critical and incurable under Section 292B, rendering the reassessment invalid. This ruling emphasizes the importance of following procedural safeguards in reassessment cases and highlights the limitations on the AO’s authority. Taxpayers should ensure that reassessment notices comply with legal requirements to avoid invalidation.