INCOME TAX19 Oct 2026
ITAT Lucknow quashes Bitcoin tax addition over notice timing
A Bitcoin investor's ₹88.55 lakh tax addition has been cancelled by the Income Tax Appellate Tribunal in Lucknow. The tribunal found the officer gave less than the seven days the law requires for a reply, and ignored a response already filed. For anyone facing a reassessment notice, this case was decided on procedure alone. It does not settle whether his Bitcoin explanation was right.
Key Statutory Highlights
- He reported a ₹3.34 lakh Bitcoin loss, with purchase cost of ₹88.14 lakh and sale proceeds of ₹84.80 lakh, but the officer added ₹88.55 lakh.
- The department asked for a reply by 31 March 2022 yet passed its order on 29 March, before the response period had run out.
- The tribunal voided the reassessment from the outset and did not decide the remaining grounds of appeal on merit.
Actionable Advice for Taxpayers / Founders:The ruling turns on the reply window for a Section 148A(b) notice: the tribunal held at least seven days must be allowed unless the law permits otherwise. Check that window when such a notice reaches you.
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: