VODAFONE IDEA LIMITED (FORMERLY KNOWN AS VODAFONE DIGILINK LIMITED),MUMBAI vs. THE DEPUTY COMMISSIONER OF INCOME-TAX CIRCLE 5(2)(1) - MUMBAI, MUMBAI

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ITA 7730/DEL/2025Status: DisposedITAT Delhi25 May 2026AY 2005-068 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 order was not sustainable in law because the AO failed to dispose of the assessee's objections to the reopening reasons. This failure violated the principles laid down by the Supreme Court in GKN Driveshafts (India) Ltd. v. ITO.

What were the facts?

The assessee filed two appeals for AY 2005-06. One appeal was identified as a duplicate and rejected. The primary appeal challenged the reassessment order, arguing it was unsustainable as the Assessing Officer (AO) did not dispose of objections to the reopening reasons before finalization.

What were the issues?

Whether a reassessment order is valid if the Assessing Officer fails to dispose of the assessee's objections to the reasons for reopening before finalizing the assessment.

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: “E” NEW DELHI

Before: SHRI SATBEER SINGH GODARA & SHRI NAVEEN CHANDRA

For Respondent: Ms. Ankush Kalra, Sr. DR
Hearing: 20.05.2026Pronounced: 20.05.2026

IN THE INCOME TAX APPELLATE TRIBUNAL, DELHI BENCH: “E” NEW DELHI BEFORE SHRI SATBEER SINGH GODARA, JUDICIAL MEMBER & SHRI NAVEEN CHANDRA, ACCOUNTANT MEMBER ITA Nos. 7730 & 7731/Del/2025 Assessment Year: 2005-06 Vodafone Idea Limited Vs. Deputy Commissioner of (formerly Vodafone Digilink Limited Income Tax which is merged with Idea Cellular Circle 5(2)(1) Limited, whose name has been Room No. 571, 5th Floor, changed to Vodafone Idea Limited) Aayakar Bhavan, MK Road, 10th Floor, Birla Centurion, Mumbai- 400020 Century Mills Compound, Pandurang Budhkar Marg Worli Mumbai- 400030 PAN: AAACA3202D (Appellant) (Respondent) Assessee by Sh. Ketan Ved, CA Department by Ms. Ankush Kalra, Sr. DR Date of hearing 20.05.2026 Date of pronouncement 20.05.2026 ORDER PER SATBEER SINGH GODARA, JM:

These assessee’s twin appeals ITA Nos. 7730 & 7731/Del/2025; both for Assessment Year 2005-06, arise against Commissioner of Income Tax, National Faceless Appeal Centre (for short, “CIT(A)/NFAC”)’s order dated 28.09.2025 having DINs No.

ITA No. 7730 & 7731/Del/2025

ITBA/ NFAC/ S/ 250/ 2025-26/ 1081270639(1), involving proceedings u/s 147 r.w.s 143(3) of the Income Tax Act, 1961; hereinafter referred to as ‘the Act’; respectively. Heard both the parties at length. Case files perused.

2.

Learned counsel states very fairly that the assessee’s latter appeal herein ITA No. 7731/Del/2025 is a “duplicate” file only. Rejected in very terms.

3.

Next comes the assessee “lead” appeal ITA Nos. 7730/Del/2025. Its first and foremost legal argument/ ground raised herein is that the impugned reassessment framed in its case on 28.03.2013 itself is not sustainable in law once the learned Assessing Officer had not disposed off its objections to the reopening reasons before finalising the same so as to ensure compliance to the of the hon’ble apex court’s landmark decision in GKN Driveshafts (India) Ltd., v. ITO, 259 ITR 19 (SC).

4.

The Revenue on the other hand strongly supports the impugned reopening in light of the CIT(A) detailed discussion at Page 10 Para 2 that the Assessing Officer had duly taken care of 2 | P a g e

ITA No. 7730 & 7731/Del/2025

the assessee’s foregoing contentions. We find no merit in the Revenue’s stand once it is crystal clear that the Assessing Officer had not disposed off the assessee’s objections to the impugned reopening reasons in light of this tribunal’s recent order in ITA No. 1152/Del/2020, dated 27.12.2024 in ITO vs Hardeep Singh, having decided the very issue against the department, as under:

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5.

We adopt the above extraction detailed discussion mutatis mutandis to quash the impugned assessment herein framed in the assessee’s case in very terms. All other remaining pleadings between the parties on merits stand rendered academic. The assessee succeeds in the instant “lead” appeal ITA No. 7730/Del/2025 therefore.

6.

These assessee’s twin appeals ITA Nos. 7730/Del/2025 & 7731/Del/2025 are allowed and dismissed; respectively, in preceding terms. A copy of this common order be placed in the respective case files. Order pronounced in the open court on 20.05.2026.

Sd/- Sd/- (NAVEEN CHANDRA) (SATBEER SINGH GODARA) ACCOUNTANT MEMBER JUDICIAL MEMBER Dated: 25.05.2026 Pooja Mittal/- Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(A) 5. DR Asst. Registrar, ITAT, New Delhi

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