Reassessment Initiated Based on Incorrect Non-Filing of ITR Alert from Insight Portal: Patna HC Quashes Demand

Patna High Court quashed a reassessment initiated based on an incorrect "non-filing of ITR" alert from the insight portal, where the assessee had actually filed the return. The court found that the very basis for initiating the reassessment proceedings was factually incorrect due to an error in the tax department's system or data. Since the assessee had indeed filed their income tax return, the reassessment notice and subsequent demand were deemed invalid and were set aside by the High Court. This case highlights the importance of accurate data and due diligence in initiating tax reassessment proceedings.