ASSISTANT COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE-25, DELHI, DELHI vs. CCL INTERNATIONAL LIMITED, DELHI

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ITA 1471/DEL/2026Status: DisposedITAT Delhi31 August 2026AY 2011-124 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the Assessing Officer's failure to comply with the statutory requirement of Section 147, specifically the first proviso, was fatal to the validity of the reopening. Consequently, the reopening was quashed.

What were the facts?

The assessee challenged the validity of the reopening of assessment under Section 147 of the Income Tax Act. The Assessing Officer's reasons for reopening did not clearly state non-disclosure of relevant particulars by the assessee. The Revenue argued for a holistic approach to the facts.

What were the issues?

Whether the reopening of assessment under Section 147 was valid when the reasons provided by the Assessing Officer did not explicitly state non-disclosure of material facts by the assessee.

Which sections of the Income-tax Act were involved?

Section 147,Section 143(3)

AI-generated summary — verify with the full judgment below

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

Before: SHRI SATBEER SINGH GODARA & SHRI NAVEEN CHANDRA

For Appellant: Adv. Sh. Govind Agarwal, CA
Hearing: 17.08.2026Pronounced: 31.08.2026

IN THE INCOME TAX APPELLATE TRIBUNAL, DELHI BENCH: ‘G’ NEW DELHI BEFORE SHRI SATBEER SINGH GODARA, JUDICIAL MEMBER AND SHRI NAVEEN CHANDRA, ACCOUNTANT MEMBER ITA Nos.1452/Del/2026 & 1471/Del/2026 Assessment Year: 2011-12 With ITA No.1472/Del/2026 Assessment Year: 2017-18 M/s. CCL International Vs. DCIT/ACIT, Ltd., Circel-5(2), Ch. No. 206-207, Ansal New Delhi Satyam, RDC, Rajnagar, Ghaziabad PAN: AAACC2810K (Appellant) (Respondent/Cross-Appellant)

Assessee by Sh. Akhilesh Kumar, Adv. Sh. Govind Agarwal, CA Department by Sh. Bhogendra Prasad, Sr. DR

Date of hearing 17.08.2026 Date of pronouncement 31.08.2026 ORDER PER SATBEER SINGH GODARA, JM These assessee’s and Revenue’s cross appeals ITA No.1452 & 1471/Del/2026 and the latter’s appeal ITA Nos.1472/Del/2026 for assessment years 2011-12 & 2017-18, arise against the Commissioner of Income Tax (Appeals)-29 [in short, the “CIT(A)”], New Delhi’s orders dated 07.10.2025 and 10.10.2025 passed in

ITA Nos.1452, 1471 & 1472/Del/2026

case nos. CIT(A), Delhi-2 10293/2018-19 and 10563/2019-20 involving proceedings under sections 143(3) and 147/143(3) of the Income-tax Act, 1961 (hereinafter referred to as ‘the Act’); respectively. Heard both the parties. Case files perused. 2. Delay(s) of 71 days and 10 days in filing of the assessee’s and the Revenue’s twin appeal(s); respectively, are condoned in larger interest of justice and in light of Collector, Land & Acquisition vs. Mst. Katiji & Others (1987) 167 ITR 471 (SC). 3. We first of all advert to the assessee’s appeal ITA No.1452/Del/2026 raising its first and foremost legal ground challenging validity of the impugned reopening itself. It invites our attention to the learned Assessing Officer’s section 143(3) assessment framed on 28.02.2014 (pages 49 to 50 of the paper- book) followed by his 148 reopening reasons (at pages 63 to 64) nowhere indicating as to whether it was an instance of non- disclosure of all the relevant particulars “fully” and “truly”, as the case may be, at its behest so as to fulfill the primary legal requirement enshrined in section 147 r.w. 1st proviso thereto.

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ITA Nos.1452, 1471 & 1472/Del/2026

4.

Faced with this situation, the Revenue vehemently supports the impugned reopening that we ought to appreciate the totality of the facts and circumstances on whole-sum basis rather than adopting a hyper technical approach. We find no merit in the Revenue’s stand once the learned Assessing Officer has failed to comply the aforesaid statutory provision(s) i.e. section 147 1st proviso which has indeed been held fatal to the validity of the impugned reopening as per Hindustan Lever Limited Vs. R.B. Wadkar (2004) 268 ITR 332 (Bom). The same stands quashed therefore. The assessee succeeds in ITA No. 1452/Del/2025 and the Revenue’s cross appeal ITA No.1471/Del/2026 fails therefore as the necessary corollary. 5. Next comes the Revenue’s latter appeal ITA No. 1472/Del/2026 which involves tax effect of Rs.51,68,421/- which is less than the minimum tax effect prescribed of Rs.60 lakhs in the CBDT latest Circular No. 9/2024, dated 17.09.2024. Rejected in very terms therefore. 6. The assessee’s instant appeal ITA No.1452/Del/2026 is allowed and the Revenue’s twin appeals ITA Nos.1471 &

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ITA Nos.1452, 1471 & 1472/Del/2026

1472/Del/2026 are dismissed. A copy of this common order be placed in the respective case files. Order pronounced in the open court on 31st August, 2026 Sd/- sd/- (NAVEEN CHANDRA) (SATBEER SINGH GODARA) ACCOUNTANT MEMBER JUDICIAL MEMBER Dated: 31st August, 2026. RK/- Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(A) 5. DR Asst. Registrar, ITAT, New Delhi

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