New Delhi, Sept. 17 -- A Mumbai taxpayer faced reassessment proceedings for assessment year 2018-19 after the tax department treated Rs.1,24,55,654 from bitcoin sales as unexplained investment under Section 69 of the Income-tax Act. The Income Tax Appellate Tribunal, Mumbai Bench, has now quashed the reassessment after finding that the approval obtained for reopening the assessment was not from the authority prescribed under Section 151(ii).

The case concerns Mohammed Hasseb Mohammed Hanif Khan vs Income Tax Officer, Ward 34(2)(1), Mumbai, ITA No. 4713/Mum/2026. The tribunal pronounced its order on 11 September 2026.

The taxpayer's assessment for AY 2018-19 was reopened through a notice issued under Section 148 on 13 April 2022. The tax...