2026 (7) TMI 1894

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....)] under Section 250 of the Income Tax Act, 1961 (hereinafter referred to as 'the Act') arising out of the Assessment Orders passed by the Assessment Unit, Income-tax Department (hereinafter referred to as 'the ld. AO') under Section 147 of the Income Tax Act, 1991 ('Act' for short) for Assessment Year 2017-18 and 2018-19 respectively. ITA No. 9159/Del/2025 (A.Y 2018-19) (Assessee's Appeal) 2. The Assessee has challenged the initiation of reassessment proceeding as invalid and without jurisdictional and further that without compliance with the legal requirements of the provision of Section 147/148//148A/151/149 and Explanation 2 of Section 148 of the Act. The Assessee in the year under consideration on the basis of information receive....

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....ly M/s GPA Food Private Limited having PAN No. AAECG2324G to the tune of Rs. 2,50,00,000/- and on the returned income shown by the Assessee therein at Rs. 5,30,50,600/- filed on 29/01/2018, whereas the return filed by the Assessee before us of Rs. 3,00,74,890/- and it was filed on 22.09.2018 appearing at the very first paragraph of the assessment order dated 20.03.2021 appearing at Page 55 of the Paper Book filed before us having different PAN. Such original assessment was done under Section 143(3) r.w. Section 143(3A) and 143(3B) of the Act dated 20.03.2021. Thus, it is evident that the loan transaction referred by the Ld. A.O. in reopening of assessment is not the Assessee namely M/s GPA Capital Foods Pvt. Ltd. having PAN No. AAJCA1965A w....

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....is without jurisdiction as argued by the Ld. AR. 5. Under these fact and circumstances of the matter, the Ld. Advocate appearing for the Assessee further argued that since the reassessment proceeding has been initiated after the expiry of three years from the end of the relevant assessment year i.e. 2018-19, the Ld. A.O. was not justifying in proceeding with the assessment in deficiencies of provision of Section 149(1)(b) of the Act and thus, not sustainable. In this regard, he has relied upon the Judgment passed by the Co-ordinate Bench of the Tribunal in the case of Devendra Singh vs. Dy CIT in ITA No. 4715/Del/2025 dated 27.11.2025 reported in 2025 (12) TMI 590-ITAT, Delhi. 6. The Ld. DR has not been able to controvert the submissi....

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....before the ld. CIT(A) this particular aspect of the matter duly raised by the Assessee that the information on the basis of which the assessment was initiated was nothing but search on the third party carried on 20.07.2022 wherein the information pertains to the assessee have been considered incriminating while computing income in the hands of the assessee. Since, search was conducted after 01.04.2021 amendment under the Finance Act, 2021 shall apply wherein it has been strictly directed to be followed that where the material found in the third-party search is relied upon for making assessment, department is required to issue notice following the provisions laid down on the 2nd proviso to Section 148 r.w.s. proviso (c) to Section 148 of the....