DEXTSOFT SOLUTION P. LT.,NEW DELHI vs. ITO WARD-7(1), NEW DELHI

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ITA 9499/DEL/2019Status: DisposedITAT Delhi02 July 2025AY 2011-123 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 the assessment was invalid. The Judicial Member, speaking for the Bench, noted that the assessee's contention regarding the mechanical approval of the prescribed authority under section 151 of the Act was not rebutted 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. Consequently, all other pleadings on merits were rendered academic. The appeal filed by the assessee was allowed, and the assessment order was set aside. No issue was expressly left undecided.

What were the facts?

The assessee, Dextsoft Solution Pvt. Ltd., filed an appeal for assessment year 2011-12 against the order of the Commissioner of Income Tax (Appeals)-3, New Delhi. The impugned order was passed under section 147/143(3) of the Income-tax Act, 1961. The primary issue raised by the assessee's counsel was the validity of the reopening of assessment. The assessee contended that the approval granted by the prescribed authority under section 151 of the Act to the Assessing Officer's proposal for reopening was mechanical, indicated by the noting "yes, it is a fit case...". This contention was not rebutted by the revenue.

What were the issues?

1. Whether the reopening of assessment under section 147 of the Income-tax Act, 1961, is valid when the approval of the prescribed authority under section 151 of the Act is mechanical? Assessee's contention: The learned counsel for the assessee argued that the impugned reopening is invalid because the approval granted by the prescribed authority under section 151 was merely mechanical, as evidenced by the noting "yes, it is a fit case...". This mechanical approval renders the entire reopening process void. Revenue's contention: The department did not rebut the assessee's contention regarding the mechanical approval of the prescribed authority. Therefore, no specific arguments were recorded from the revenue's side on this issue.

Which sections of the Income-tax Act were involved?

Section 147,Section 143(3),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 S. RIFAUR RAHMAN

Hearing: 02.07.2025Pronounced: 02.07.2025

Date of hearing 02.07.2025 Date of pronouncement 02.07.2025 ORDER

PER SATBEER SINGH GODARA, JM

1.

This assessee’s appeal for assessment year 2011-12, arises against the Commissioner of Income Tax (Appeals)-3 [in short, the “CIT(A)”], New Delhi’s order dated 25.11.2019, involving proceedings under section 147/143(3) 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 “yes, it is a fit case………………”.

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