PRAKASH KUNDANDAS BAJAJ,MUMBAI vs. ASSISSTANT COMMISSIONER OF INCOME TAX, DELHI

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ITA 7498/DEL/2026Status: DisposedITAT Delhi19 August 2026AY 2021-223 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the assessment order is bad in law due to the failure to follow the mandatory procedure of issuing a draft assessment order. This issue has been previously settled by a co-ordinate bench in the assessee's own case.

What were the facts?

The assessee's appeal for AY 2021-22 challenges the validity of the assessment order. The primary contention is that the Assessing Officer failed to follow the mandatory procedure of passing a draft assessment order as required by Section 144C of the Income-tax Act.

What were the issues?

The key legal issue is the validity of the assessment proceedings due to the non-compliance with the mandatory requirement of issuing a draft assessment order under Section 144C of the Income-tax Act.

Which sections of the Income-tax Act were involved?

Section 147,Section 144C

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCH: “SMC” NEW DELHI

Before: SHRI SATBEER SINGH GODARA

Hearing: 19.08.2026Pronounced: 19.08.2026

This assessee’s appeal for assessment year 2021-22, arises against the Commissioner of Income Tax (Appeals)-24, New Delhi [in

ITA No. 7498/Del/2026

short, the “CIT(A)”], Delhi’s DIN and order no. ITBA/APL/M/250/2026-27/1091011245(1), dated 13.07.2026 involving proceedings under section 147 of the Income-tax Act, 1961 3. Coming to the first and foremost legal issue of validity of the impugned assessment itself, learned counsel submits that both the lower authorities have failed to follow the statutory requirement of passing a draft assessment order as mandated u/s 144C of the act which has gone unrebutted from the Revenue side.

4.

That being the case, the tribunal hereby notices that the instant legal issue is no more res Integra as the learned co-ordinate bench’s order dated 13.07.2026 in the assessee’s appeal itself ITA No. 2797/Del/2026 decided on 13th July 2026, has already settled the same against the department; reading as under:

“2. The first jurisdictional issue in this appeal of the assesse is as regards the order of learned CIT(A) confirming the action of the Assessing Officer in framing assessment which is bad in law on account of failure of the Assessing Officer to follow mandatory procedure provided under section 144C of the Act and assessment is framed without framing draft assessment order, which is mandatory condition in the case of eligible assesse. 8. The other grounds raised by the assesse in this appeal have been rendered academic in nature and need no adjudication in view of the fact that we have allowed the jurisdictional issue raised by the assesse as above.”

ITA No. 7498/Del/2026

5.

I adopt the above detail mutatis mutandis to quash, the impugned assessment framed in the assessee’s case. All other pleadings between the parties on merits stand rendered academic.

6.

This assessee’s appeal is allowed.

Order pronounced in the open court on 19th August, 2026

Sd/- (SATBEER SINGH GODARA) JUDICIAL MEMBER Dated: 27/08/2026. Binita, Sr. PS Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(A) 5. DR Asst. Registrar, ITAT, New Delhi

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