SIROO FASHIONS PVT LTD.,DELHI vs. ITO,WARD-23(2), NEW DELHI

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ITA 495/DEL/2025Status: DisposedITAT Delhi13 August 2025AY 2012-133 pages

In favour of the assessee: the assessee's appeal was allowed. From the AI summary of this appeal.

AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the reopening of assessment was invalid. The Judicial Member, speaking for the bench, noted that the assessee's contention regarding the mechanical approval by the prescribed authority under section 151 of the Act was unrebutted by the revenue. Citing the Supreme Court decision in CIT Vs. S. Goyanka Lime and Chemical Pvt. Ltd. (2015) 64 taxmann.com 313 (SC), the Tribunal quashed the assessment proceedings. Consequently, all other pleadings on merits were rendered academic. The appeal was allowed, and the assessment order was quashed.

What were the facts?

The assessee, Siroo Fashions Pvt. Ltd., filed an appeal for assessment year 2012-13 against an order passed by the Commissioner of Income Tax (Appeals)/National Faceless Appeal Centre (NFAC), Delhi. The impugned order involved proceedings under section 147 read with section 144 of the Income-tax Act, 1961. The appeal arose from the validity of the reopening of assessment. The assessee's counsel pointed out that the approval for reopening by the prescribed authority under section 151 of the Act was a mere mechanical endorsement stating, "I am satisfied...". This fact remained unrebutted by the revenue.

What were the issues?

1. Whether the reopening of assessment under section 147 read with section 144 of the Income-tax Act, 1961, is valid, given that the approval by the prescribed authority under section 151 was mechanical? Assessee's contention: The learned counsel for the assessee argued that the impugned reopening is invalid because the approval from the prescribed authority under section 151 was a mere mechanical endorsement, lacking independent satisfaction. The assessee relied on the decision in CIT Vs. S. Goyanka Lime and Chemical Pvt. Ltd. (2015) 64 taxmann.com 313 (SC). Revenue's contention: The department did not rebut the assessee's contention regarding the mechanical approval of the reopening proposal by the competent authority.

Which sections of the Income-tax Act were involved?

Section 147,Section 144,Section 151

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCH: ‘B’ NEW DELHI

Before: SHRI SATBEER SINGH GODARA & SHRI MANISH AGARWAL

For Appellant: Dr. Kapil Goel, Adv
Hearing: 13.08.2025Pronounced: 13.08.2025

Assessment Year: 2012-13 Vs. Income Tax Officer, Siroo Fashions Pvt. Ltd., C/o- Kapil Goel, Adv, Ward-23(2), F-26/124, Sector-7, Rohini, New Delhi Delhi PAN: AALCS8232L (Appellant) (Respondent) Assessee by Dr. Kapil Goel, Adv. Department by Sh. Rajesh Kumar Dhanesta, Sr. DR Date of hearing 13.08.2025 Date of pronouncement 13.08.2025 ORDER

PER SATBEER SINGH GODARA, JM

1.

This assessee’s appeal for assessment year 2012-13, arises against the Commissioner of Income Tax (Appeals)/National Faceless Appeal Centre [in short, the “CIT(A)/NFAC”], Delhi’s DIN and order no. ITBA/NFAC/S/250/2024-25/1070971609(1), dated 06.12.2024 involving proceedings under section 147 r.w.s. 144 of the Income-tax Act, 1961 (hereinafter referred to as ‘the Act’). Heard both the parties. Case file perused.

2.

It emerges during the course of hearing that there arises the first and foremost issue of the validity of the impugned reopening itself, which goes to the root of the matter. This is for the precise reason that the learned counsel representing assessee has invited our attention to the prescribed authority’s section 151 approval to the Assessing Officer’s reopening proposal, wherein, he has recorded “I am satisfied……..”.

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