DCIT, DELHI vs. MUBARAK OVERSEAS PRIVATE LIMITED, DELHI

PER ANUBHAV SHARMA, JM:

These cross appeals preferred by the assessee and the revenue against the orders of the Ld. National Faceless Appeal Centre (NFAC), Delhi (hereinafter referred to as the First Appellate Authority or ‘the ld. FAA’ for short) in appeals filed before him against the orders of the ld. Assessing Officer (hereinafter referred to as the Ld. AO, for short) passed u/s 143(3)/144/147 of the Income-tax Act, 1961 (hereafter referred to as ‘the Act’). Further details of the orders of the lower authorities are as under : -

ITA No. & Ld. FAA who Appeal No. & Date of order AO who passed the AY passed the appellate of the Ld. FAA assessment order & order Date of order 6393/Del/25 NFAC, Delhi DIN & Order No : NFAC, 2014-15 ITBA/NFAC/S/250/2025- Dated; 27.03.2022 26/1076520885(1) Dated 28.05.2025 4651/D/25 NFAC, Delhi DIN & Order No : NFAC, 2014-15 ITBA/NFAC/S/250/2025- Dated; 27.03.2022 26/1076520885(1) Dated 28.05.2026

P a g e | 3 ITA Nos. 6393 & 4651/Del/2025 Mubarak Overseas Pvt. Ltd. (AY: 2014-15) “ADDITIONAL GROUND No. 1:- "That the proceedings U/s 147 / 148 are without jurisdiction and bad in law." ADDITIONAL GROUND No. 2:- "That under the facts and circumstances of the case, the proceedings are without jurisdiction as no notice U/s. 148A has been issued in terms of Hon'ble Supreme Court case in case of Ashish Agarwal.”

“8. In the instant case, from the perusal of the notice issued u/s 148, we find the said though was digitally signed on 31st March, 2021 however, the same is sent to the assessee only on 01/04/2021 which is evident from the email send to assessee, as available at paper book page 2 filed by assessee. The Hon’ble Jurisdictional High Court in the case of Suman Jeet Agarwal vs.

P a g e | 4 ITA Nos. 6393 & 4651/Del/2025 Mubarak Overseas Pvt. Ltd. (AY: 2014-15) ITO in WP(C) No.10/2022, CM Appeal No.16/2022 vide order dated 27/09/2022 has categorized those cases under category-C, where the notices u/s 148 of the Act were issued u/s 148 of the Act are served upon the assessee on or after 01/04/2021. As per Hon’ble High Court in such cases, following directions are given: “31.2 Category C: The petitions challenging notices falling under category “C” which are digitally signed on 31st of March, 2021, are disposed of with the directions to the JAO’s to verify and determine the date and time of dispatch as recorded in the ITBA portal in accordance with the law laid down in this judgment as the date of issuance. If the date and time of dispatch recorded is on or after 1st of April, 2021, the notices are to be considered as show cause notice, under section 148-A(b) as per the directions of the Apex Court in the case of Ashish Agarwal (supra) judgment” As observed above, the notice in the present case was dispatched/served upon the assessee on 01/04/2021, thus the same should be treated as notice u/s 148A(b) and AO should complete the consequent proceedings as provided u/s 148A of the Act. However, the AO has proceeded to pass the order u/s 148 r.w.s 144B of the Act on the notice so issued u/s 148 on 31/03/2021 served upon the assessee on 01/04/2021. Thus, in view of the order of Hon’ble jurisdictional High Court in the case of Suman Jeet Agarwal (supra), we hold the order so passed without following the procedure prescribed u/s 148 of the Act is bad in law and is invalid.”

considered view that the decision relied squarely applies to facts of case. The

appeal of assessee is allowed as the assumption of jurisdiction itself is

vitiated and the consequent assessment order becomes null and void. The

appeal of the department is thus, rendered infructuous and accordingly,

dismissed.

Order pronounced in the open court on 22.05.2026

Sd/- Sd/- (S Rifaur Rahman) (Anubhav Sharma) ACCOUNTANT MEMBER JUDICIAL MEMBER Dated 22.05.2026 Rohit, Sr. PS

P a g e | 5 ITA Nos. 6393 & 4651/Del/2025 Mubarak Overseas Pvt. Ltd. (AY: 2014-15) Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT ASSISTANT REGISTRAR ITAT NEW DELHI