THE BHIWANI CENTRAL COOPERATIVE BANK LTD.,HARYANA vs. ITO, WARD-1, BHIWANI

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ITA 1781/DEL/2026Status: DisposedITAT Delhi15 July 2026AY 2016-173 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 approval for the Section 148 notice was not granted by the competent authority as per the Supreme Court's decision in Rajiv Bansal. Therefore, the notice was vitiated.

What were the facts?

The assessee challenged an assessment order for AY 2016-17, primarily arguing that the notice under Section 148 was not issued by a competent authority. The notice was issued after obtaining approval from the Principal CIT, Rohtak.

What were the issues?

Whether the notice issued under Section 148 of the Income Tax Act, 1961, was validly issued by a competent authority, considering the approval obtained.

Which sections of the Income-tax Act were involved?

Section 148,Section 151

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “A” BENCH, DELHI

Before: SHRI ANUBHAV SHARMA & SHRI SANJAY AWASTHI

Hearing: 08.07.2026Pronounced: 15.07.2026

P a g e | 1 ITA No.1781/Del/2026 The Bhiwani Central Cooperative Bank Ltd. (AY: 2016-17) IN THE INCOME TAX APPELLATE TRIBUNAL “A” BENCH, DELHI BEFORE SHRI ANUBHAV SHARMA, JUDICIAL MEMBER & SHRI SANJAY AWASTHI, ACCOUNTANT MEMBER

ITA No.1781/Del/2026 (Assessment Year: 2016-17)

The Bhiwani Central Vs. Income Tax Officer Cooperative Bank Ltd. Ward -1 SCO 224 to 226, Co-op Bhiwani, Haryana Bank City, Near HUDA Park, Bhiwani H.O. Bhiwani – 127021 Haryana स्थायीलेखासं./जीआइआरसं./PAN/GIR No: AAATT7780Q Appellant .. Respondent Appellant by : Sh. Ankit Kumar, Adv. Respondent by : Sh. Balkrishan Gopal, Sr. DR

Date of Hearing 08.07.2026 Date of Pronouncement 15.07.2026

O R D E R PER ANUBHAV SHARMA, JM:

This appeal is preferred by the assessee against the order dated 23.01.2026 of the Ld. National Faceless Appeal Centre (NFAC) Delhi (hereinafter referred as Ld. First Appellate Authority or in short Ld. ‘FAA’)

P a g e | 2 ITA No.1781/Del/2026 The Bhiwani Central Cooperative Bank Ltd. (AY: 2016-17) in DIN & Order No: ITBA/NFAC/S/250/2024-25/1085118885(1) arising out of the assessment order dated 31.05.2023 u/s 147 of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) passed Assessment Unit, Income Tax Department, for AY: 2016-17.

2.

On hearing both sides we find that the primary ground of challenge of the impugned assessment order is that the notice u/s 148 of the Act for AY: 2016-17 has not been issued by competent authority. The copy of notice available at page No. 55 of the paper book shows that the same has been issued after obtaining approval of Pr. CIT, Rohtak, dated 29.07.2022.

3.

Though the ld. DR has defended that impugned approval, however, we find that issue is covered in favour of the assesse by decision of Hon’ble Supreme Court in case of Rajiv Bansal (2024) (1) TMI 264 wherein with regard to AY: 2016-17, Hon’ble Supreme Court has laid down that competent authority for giving the approval was Principle Chief Commissioner or Deputy Director General and where these authorities are not there, then, the Chief Commissioner or Director General are the competent authority to grant approval. This view has been followed by Coordinate Bench in case of Kotwalia Builders LLP Vs. ITO, Ward 14(3) in ITA 2124/Del/2025 order dated 28.11.2025, in which one of us, the ld.

P a g e | 3 ITA No.1781/Del/2026 The Bhiwani Central Cooperative Bank Ltd. (AY: 2016-17) Judicial member was on the Bench and in case of Amitabh Tayal Vs. ITO 636 & 637/Del/2016 order dated 06.05.2026 in which one of us, the ld. Accountant Member was on bench. The notice date 30.07.2022 thus, being issued beyond 3 years with approval by ld. PCIT u/s 151(ii) of the Act, is vitiated.

4.

In the light of aforesaid we sustain the ground No. 2.7. The appeal of assesse is allowed and the impugned assessment order is quashed.

Order pronounced in the open court on 15.07.2026

Sd/- Sd/- (Sanjay Awasthi) (Anubhav Sharma) ACCOUNTANT MEMBER JUDICIAL MEMBER

Dated 15.07.2026 Rohit, Sr. PS

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