INCOME TAX17 Sept 2026
Bitcoin sale triggered ₹1.24 crore tax addition, but ITAT quashed the reassessment. Here’s why | Mint
Mumbai's tax tribunal has cancelled a reassessment that treated ₹1.24 crore from bitcoin sales as unexplained investment for assessment year 2018-19. It found the approval to reopen the case came from a lower authority, not the one Section 151(ii) requires. This affects taxpayers facing older reopenings. Check who sanctioned your notice, and challenge it in time if the approval was wrong.
Key Statutory Highlights
- Mumbai ITAT quashed the AY 2018-19 reassessment after finding the approval came from the Principal Commissioner of Income Tax-3, not the higher authority required under Section 151(ii).
- The tax department had treated ₹1,24,55,654 of bitcoin sale proceeds as unexplained investment under Section 69 of the Income-tax Act.
- The tribunal relied on the Supreme Court's judgment in Union of India vs Rajeev Bansal, which linked the correct approving authority to the time when the Section 148 notice was issued.
Actionable Advice for Taxpayers / Founders:If you receive a reopening notice for an older year, check which authority approved it before you reply, and ask your CA whether the approval can be challenged — though the outcome will depend on your own facts and the applicable law.
Statutory Disclaimer: TaxQue Shorts are AI-assisted editorial briefs for compliance awareness. This brief has not passed every source check; confirm the original notification before acting. This does not constitute formal legal or CA counsel.
TaxQue News Desk
Share: