M/S REDRAVEERYA INFRAPROJECTS (P) LTD,DELHI vs. ACIT CRICEL 19 (1), DELHI

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ITA 5863/DEL/2026Status: DisposedITAT Delhi09 July 2026AY 2019-203 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 reassessment proceedings initiated and framed by the ACIT were contrary to the CBDT circular No. 1 of 2011. Therefore, the impugned reassessment was quashed.

What were the facts?

The assessee filed a return declaring a total loss. The Assessing Officer (ACIT) initiated reassessment proceedings under section 147 and issued a notice. The assessee argued that the reassessment was invalid based on a CBDT circular.

What were the issues?

Whether reassessment proceedings initiated by an officer not authorized as per CBDT circular are valid.

Which sections of the Income-tax Act were involved?

Section 147

AI-generated summary — verify with the full judgment below

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

Before: SHRI SATBEER SINGH GODARA

Hearing: 09.07.2026Pronounced: 09.07.2026

IN THE INCOME TAX APPELLATE TRIBUNAL, DELHI BENCH: “SMC” NEW DELHI BEFORE SHRI SATBEER SINGH GODARA, JUDICIAL MEMBER ITA No. 5863/Del/2026 Assessment Year: 2019-20 M/s Rudraveerya Infraprojects (P) Vs. Assistant Commissioner of Income Ltd., Tax, 205, Second Floor, Aggarwal City Circle 19(1), Mall Road No. 44, Pitampura, Delhi. Delhi-110034. PAN: AAFCP5571K (Appellant) (Respondent) Assessee by Sh. Ankit Kumar, Adv. Department by Sh. Nirmal Nangia, Sr. DR

Date of hearing 09.07.2026 Date of pronouncement 09.07.2026 ORDER

This assessee’s appeal for assessment year 2019-20, arises against the Commissioner of Income Tax (Appeals)/National Faceless Appeal Centre, [in short, the “Ld. CIT(A)/NFAC”], Delhi’s order dated 17.12.2025 having DIN & Order No. ITBA/NFAC/S/250/2025-26/1083792385(1), involving proceedings under section 147 of the Income-tax Act, 1961 (hereinafter referred to as ‘the Act’).

Heard both the parties. Case file perused.

ITA No.- 5863/Del/2026 Rudraveerya Infraprojects P. Ltd. 2. Delay of 87 days in filing of the instant appeal is condoned in the larger interest of justice in light of Collector Land Acquisition vs. Mst. Katiji & Ors (1987) 167 ITR 471 (SC).

3.

Coming to the assessee’s first and foremost legal ground / argument raised herein, it emerges during the course of hearing that it had declared total loss of Rs. 13,07,106/- vide return submitted on 30.10.2019. Learned counsel next invites the tribunal’s attention on the CBDT land mark circular / instruction no. 1 of 2011 that such a return filed in a metro-city disclosing up to Rs. 20 lakhs income had to be assessed by an Income Tax Officer than the Assistant or Deputy commissioner of the Income Tax; as the case may be. And that going by page 34 of the paper book, it was the learned Assistant Commissioner of Income Tax, Circle 19(1) who had issued section 148 notice to the assessee on 12.04.2023 followed by the impugned assessment herein.

3.1 This clinching factual position has got un-rebutted from the Revenue side.

4.

Faced with this situation, the tribunal hereby finds merit in the assessee’s plea that the impugned re-assessment initiated and framed by the learned Assessing Officer /ACIT is contrary to the CBDT’s aforesaid landmark circular / instruction no. 1 of 2011; in very terms. Quashed accordingly.

ITA No.- 5863/Del/2026 Rudraveerya Infraprojects P. Ltd. All remaining pleadings on merits between the parties stand rendered academic.

5.

This assessee’s appeal is allowed.

Order pronounced in the open court on 09th July, 2026

Sd/- (SATBEER SINGH GODARA) JUDICIAL MEMBER

Dated: 27th July, 2026. Pooja. Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(A) 5. DR Asst. Registrar, ITAT, New Delhi

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