TaxTMI 
TaxTMI 
2025 (10) TMI 1101
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.... 2306//Del/2025 CIT(A)-29, New Delhi dated 31.03.2025 in Appeal no.10588/2013-14 2014-15 31.05.2023 DCIT, Central Circle-25, New Delhi, u/s 147/148 of the Act 3. 2308/Del/2025 CIT(A)-29, New Delhi dated 31.03.2025 in Appeal No.10461/2017-18 2018-19 08.09.2021 DCIT, Central Circle-25, New Delhi, u/s 143(3) of the Act 4. 2309/Del/2025 CIT(A)-29, New Delhi dated 31.03.2025 in Appeal no.10079/2020-21 2021-22 11.02.2023 DCIT, Central Circle-25, New Delhi u/s 143(3) of the Act 2. We have heard the rival sides and perused the matter on record and taken into consideration the written submission. The cases were heard together as they are based on same set of facts and quite many issues are common. The ld. Counsel for assessee has primarily argued on legal issues challenging the impugned orders on various grounds to allege that the impugned assessments are not in accordance with mandate of the Act while ld. DR has defended the issues submitting that these are minor abrasions and no prejudice is established. It was also contended that grounds were not raised at earliest. 2.1 As for convenience, wherever the basic facts relevant to be consi....
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.... AY with assessed income of Rs 649,01,135. 3.2 In AY 2014-15, the case is based on general reopening action u/s 148 of the Act (under new regime after 01.04.2021) vide impugned jurisdictional notice u/s 148 of the Act dated 30.07.2022 vide order u/s 148A(d) of the Act dated 28.07.2022. The subject matter of this reopening u/s 148 of the Act is based on certain general information received at end of Ld AO from DDIT (inv) unit 2(2) as referred in impugned order u/s 148A(d) of the Act dated 28.07.2022 and impugned order u/s 148 of the Act dated 31.05.2023. Assessee filed regular return u/s 139(1) on 27.09.2014 with income declared of Rs. 18,61,880. First assessment u/s153A/143(3) of the Act was framed on 29.12.2017 for subject AY with assessed income of Rs. 735,12,908. Though first notice u/s 148 of the Act was issued on 13.04.2021 but same was converted to new law notice u/s 148A of the Act vide impugned order u/s 148A(d) of the Act and notice u/s 148 of the Act dated 28.07.2022 and 30.07.2022. Assessee was issued SCN u/s 148A(b) of the Act on 25.05.2022 post decision in Ashish Aggarwal case (2022) 138 taxmann.com 64. Assessee filed detailed jurisdictional objection to reopening a....
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....lhi High Court has been subjected to further appeal by the revenue before the Hon'ble Supreme Court and Special Leave Petition (SLP) of the revenue was dismissed which is reported in 468 ITR 10 (SC) by a speaking order by observing as under:- "2. In view of the categorical finding recorded in para 13 of the impugned judgement and in the facts of the case, no case for interference is made out in exercise of our jurisdiction under article 136 of the Constitution of India. The special leave petition is accordingly dismissed." 5. Respectfully following the aforesaid decisions, I hold that the entire assumption of jurisdiction under section 147 of the Act in the instant case is flawed and accordingly the reassessment proceedings are hereby quashed." 5. On fatal impact of non supply of relied upon material with reasons u/s148(2) of the Act, reference was made by ld. Counsel to Coordinate bench decision in ITO vs B.C. Enterprises ITA No.4972/Del/2024 (CO 08/DEL/2025) for AY 2018-2019 decided on 04.04.2025. Further reference was made to Hon'ble Delhi High court decision in case of Saraswati Petrochem Pvt. Ltd vs ITO 470 ITR 47, where in for this issue, the Hon'ble Cour....
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....iance was being placed. There is no averment in the reply of the respondents anywhere that any such information or a copy of the statement was supplied to the petitioner along with the reasons to believe. 28. In view of the above, the reasons to believe, as supplied to the petitioner, on the face of it are incomplete and do not afford the petitioner due and proper opportunity to file objections against such reassessment. The non-supply of the above material is within the teeth of the directions of the Division Bench of the Delhi and Bombay High Courts. 29. The submission of Shri Bissa that reasons to believe cannot be equated with the final conclusion and as long as the Assessing Officer has sufficient material to demonstrate that he had bonafidely formed the opinion that the income chargeable to tax has escaped assessment, the requirement of law stands satisfied is of no avail as there are no two opinions on the above aspect. Sufficiency of material is one thing and supply of the same is another, which is mandatory in nature. Therefore, the non-supply of the material referred to in the reasons to believe would be enough to render the proceedings bad, even though ....
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....stments (Section 69), Unexplained Money (Section 69A), Amount of Investment, etc. not fully disclosed in books of account (Section 69B), Unexplained Expenditure, etc. (Section 69C). The requirement of each of the aforesaid sections are different and the rules of evidence and burden of proof are also different, hence unless the Petitioner to put the notice as to the exact contravention or provisions of law under which assessment or additions are sought to be made, the Petitioner cannot defend his case" 7. Third issue is specific to AY 2013-14, that the reasons u/s 148(2) of the Act are based on very vague and non-specific allegations without any necessary particulars about how the assessee has received bogus entries. There is no specific assertion about nature of deposit. Then it leads to conclusion that merely the investigation wing report was relied and there was otherwise no live link between the information and the reasoning. 7.1 Though Ld. DR has relied the decision of Hon'ble Delhi High Court in Ganesh Ganaga Investment [2025] 173 taxmann.com 878 (Delhi), to submit that reasons or reopening and at times of approval are demonstrative of due application of mind, however, a....
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....,50,213) being less than minimum prescribed threshold of Rs 50 lacs u/s 149(1)(b) of the Act makes the reopening bad. Hon'ble Patna high court decision in case of Ankit Agarwal vs PCIT (18.04.2025) CWJ 5202 of 2024 and coordinate Delhi bench decision in case of Santosh (dated 29.11.2024 ITA 2025/Del/2024) were relied to contend that as per spirit of sec 149(1)(b) of the Act, once basis of reopening itself is found to be non surviving, the same is vitiated. We find substance in the contention as the alleged estimated commission income, finally added in impugned assessment, is nowhere subject matter of reopening order u/s 148A(D) of the Act. 10. Sixth issue is specific to AY 2021-22, and the ld. counsel has raised a ground that the impugned assessment u/s 143(3) of the Act is vitiated as the same is on the basis of the search action on the assessee dated 17.11.2021 and is contrary to the mandate of Explanation (2)(i) of section 148 of the Act. In AY 2021-22, assessment for this particular year is subject to search action u/s 132 of the Act on 17.11.2021. Assessee filed regular return u/s 139(1) of the Act on 15.03.2022 with income declared of Rs. 37,69,390. Assessee case for this ....
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....ention. This is more so when entire impugned assessment u/s 143(3) of the Act is solely founded on information /material emanating from search action u/s132 of the Act and it is not a case of general assessment based on routine or non search issues. Reference was made to Hon'ble Apex court decision in case of UOI vs Rajeev Bansal 469 ITR 46, where it has been held that; "If a statute expressly confers a power or imposes a duty on a particular authority, then such power or duty must be exercised or performed by that authority itself. Further, when a statute vests certain power in an authority to be exercised in a particular manner, then that authority has to exercise its power following the prescribed manner. Any exercise of power by statutory authorities inconsistent with the statutory prescription is invalid." 10.3 Ld. Counsel has relied Hon'ble Apex Court decision in case of Managing Director Chhattisgarh State Cooperative Bank Marayadit vs Zila Sahakarikendriya Bank Maryadit 2020 6 SCC 411 to submit that the general provision operates, save and except in situations covered by the specific provision. The rationale behind this principle of statutory construction is tha....
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....f the Act, the notice itself would be invalid and consequently, the Assessing Officer could not assume jurisdiction to proceed in the matter in terms of section 148 of the Act. The Madhya Pradesh High Court in Umashankar Mishra (supra) has dealt with a similar fact situation where the first substantial question of law dealt with in that case had considered the effect of whether an unsigned notice can be considered as an irregularity or clerical mistake. The Madhya Pradesh High Court after making reference to the conclusions drawn in B.K.Gooyee (supra) by the Calcutta High Court, has taken the view, that a notice without a signature affixed on it is an invalid notice and is effectively no notice in the eyes of law. 20. The Madhya Pradesh High Court in Umashankar (supra) has further dealt with the second substantial question of law as to whether the Tribunal was right in holding that the absence of a signature on the notice constitutes a mistake or omission within the meaning of section 292B of the Act and while addressing itself to that question, has concluded that in the absence of a signature on the notice, the same would not constitute a mistake or omission and would not....
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....n be given. The action under Section 147 of the Act is quasi-judicial action and if it is permitted that such action can be done as anonymously, it would have very serious consequences in other cases also. If the Court accepts such pieces of paper who can tomorrow stop an assessee from substituting a signed paper with another unsigned paper? 11.4 On mechanical approval aspect of PCIT Central dated 28.06.2022 with only remarks "approved", ld. Counsel again relied Hon'ble Delhi High court decision in case of SBC minerals Pvt Ltd vs ACIT 475 ITR 360, where the Hon'ble Court has held as follows; "15. It is evident that the approval order is bereft of any reasons. It does not even refer to any material that may have weighed in the grant of approval. The mere appending of the word "approved" by the PCCIT while granting approval under Section 151 to the re-opening under Section 148 is not enough. While the PCCIT is not required to record elaborate reasons, he has to record satisfaction after application of mind. The approval is a safeguard and has to be meaningful and not merely ritualistic or formal. The reasons are the link between material placed on record and the conclusio....