New Delhi, Oct. 16 -- A Mumbai man who said he earned Rs.3,500 a month as an office worker was assessed to a tax liability based on transactions worth nearly Rs.1.46 crore that he denied making. The Income Tax Appellate Tribunal (ITAT), Mumbai, has now quashed the reassessment after finding that the Income Tax Department failed to establish valid service of the notice required to reopen his assessment.

In Ravi Dilip Waghela v. Income Tax Officer, ITA No. 1799/Mum/2025, for assessment year 2012-13, the tribunal ruled on 21 September 2026 that the reassessment could not legally proceed without valid service of the notice under Section 148 of the Income-tax Act, 1961. It consequently set aside the assessment of Rs.1.46 crore, without decidi...