TRDP HAPPY WORLD PVT LTD ,DELHI vs. DCIT CENTRAL CIRCEL -19 , DELHI

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ITA 6121/DEL/2025Status: DisposedITAT Delhi19 May 2026AY 2019-208 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 found that the approval obtained from the PCIT for issuing the Section 148 notices did not pertain to the assessees in question. Consequently, the notices were deemed bad in law and without jurisdiction.

What were the facts?

Notices under Section 148 of the Income Tax Act were issued to the assessees following a search operation. The assessees contended that these notices were issued without valid prior sanction from the Principal Commissioner of Income Tax (PCIT).

What were the issues?

The primary issue was the validity of the Section 148 notices due to the alleged lack of proper sanction from the PCIT as required by Section 151.

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, DELHI

Before: YOGESH KUMAR U.S. & SHRI MANISH AGARWAL

For Appellant: CA & Sh. Pranav Yadav, Adv
Hearing: 24/03/2026Pronounced: 19/05/2026

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI DELHI BENCH ‘C’: NEW DELHI BEFORE YOGESH KUMAR U.S., JUDICIAL MEMBER AND SHRI MANISH AGARWAL, ACCOUNTANT MEMBER

ITA No. 6121/Del/2025 (A.Y. 2019-20) TRDP Happy World Pvt. Ltd. Vs DCIT 92, Chanderlok, Pitampura, Central Circle-19 New Delhi E-2ARA Centre, Jhandewalan PAN: AAGCA5382L Extension, Delhi

Appellant Respondent ITA No. 5755/Del/2025 (A.Y. 2021-22) Malwa Packaging Vs DCIT 36/1/2, Talawali Chand Near Central Circle-19 Panchwati, Colony, Indore Madhya E-2ARA Centre, Pradesh-452010 Jhandewalan Extension PAN: ABMFM6177H Delhi

Appellant Respondent ITA No. 7889/Del/2025 (A.Y. 2019-20) ITA No. 7998/Del/2025 (A.Y. 2021-22) Assistant Commissioner of Income Vs M/s TRDP Happy World Tax, Room No. 267, 2nd floor, E-2, Private Limited, 92, Jhandewalan Extension, ARA Chanderlok, Pitampura, Centre, New Delhi-110055 New Delhi PAN: AAGCA5328L Appellant Respondent ITA No. 7585/Del/2025 (A.Y. 2021-22) Assistant Commissioner of Income Vs M/s Malwa Packaging Tax, Room No. 267, 2nd floor, E-2, 36/1/2, Talwawti Chanda Jhandewalan Extension, ARA Near Panchwati Colony, Centre, New Delhi-110055 Indore, Madhya Pradesh PAN: ABMFM6177H Appellant Respondent

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ITA No. 6915/Del/2025 (A.Y. 2020-21) Assistant Commissioner of Income Vs Vidya Polymer Private Tax, Room No. 267, 2nd floor, E-2, Limited Jhandewalan Extension, ARA Plot No. 78, Block B Centre, New Delhi-110055 Wazirpur Industrial Area, Wazirpur IIIS.O. Wazirpur, North West, Delhi PAN: AACCV3141J Appellant Respondent Assessee by Sh. Amit Goel, CA & Sh. Pranav Yadav, Adv Revenue by Sh. Dayainder Singh Sidhu, Date of Hearing 24/03/2026 Date of Pronouncement 19/05/2026

ORDER PER YOGESH KUMAR, U.S. JM: The captioned Appeals are filed by the respective Assessees’ and

the Revenue by challenging the respective orders of the Ld. CIT(A)

pertaining to Assessment Year 2019-20 to 2021-22.

2.

Since a common issue is involved in all the above Appeals. The

appeals are heard together. In Ground No. 1 to 3 of Assessees’ Appeal in

ITA No. 6121/Del/2025, 5755/Del/2025 and in the application filed

under Rule 27 of ITAT Rule filed by the Assessee in ITA No.7998/D/2025

and 6915/Del/2025, Assessees have raised a legal issue challenging the

validity of issuance of notice under Section 148 of the Income Tax Act,

1961 ('Act' for short).

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3.

The Ld. Counsel for the Assessee vehemently submitted that the notice

u/s 148 of the Act has been issued without valid prior sanction u/s 151

of the Act and further submitted that the so-called approval of the PCIT

Central Bearing No. 6355 is not at all pertaining to the

Assessees/Appellant mentioned above. Thus, sought for allowing

Assessees’legal ground No. 1 to 3 in ITA No. 6121, 5755/Del/2025 is

also sought for allowing the application filed under Rule 27 of the Rules

filed by the Assessee in ITA No.7998/Del/2025 and 6915/Del/2025 and

also sought for allowing the Appeals of the Assessees and dismissal of

the Appeal of the Revenue.

4.

Per contra, the Ld. Departmental Representative submitted that

prior sanction u/s 151 of the Act has been duly obtained before issuance

of notice u/s 148 of the Act and further by relying on the orders of the

Lower Authorities, sought for dismissing the contentions of the Ld.

Assessee's Representative.

5.

We have heard both the parties and perused the material available

on record. In the present case, a Search and seizure operation u/s 132

of the Act was carried out in the case of the assessees on 03/08/2022.

Notice dated 29/03/2023 u/s 148 of the Act was issued. As per the said

notice, the notice u/s 148 of the Act has been issued after obtaining

approval no. 6355 from PCIT (Central) Delhi. As could be seen from the

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said approval no. 6355 from PCIT (Central) Delhi, the said approval does

not pertain to any of the assessees who have filed the captioned Appeals.

For the sake of ready reference, one of such notice issued under section

148 issued by the AO is reproduced as under: -

5.

It is evident that in the notices issued u/s 148, it has been stated

"The notice is being issued after obtaining the prior approval of the PCIT

(Central), Delhi - 2 has been accorded on date 24/03/2023 vide

Reference No. 6355".Further, it is observed that above approval

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reference No. 6355 taken to obtain sanction u/s 151 of the Act belongs

to different Assessee and not to the case of the present Assessees who

are under Appeal before us. The relevant portion sanction u/s 151 of

the Act of PCIT dated 24/03/2023 is reproduced below for ready

reference:

6.

From the above extract of Sanction u/s 151 of the Act,it is evident

that in Para 7, the assessing officer has submitted the draft notices in t

the case of Tej Ram Dharam Paulbefore PCIT for A.Y. 2019-20 to A.Υ.

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2021-22. Thus, as on 24/03/2023 there was no sanction given by PCIT

for issuance of notice u/s 148 of the Act against the Assessees herein.

7.

We have also verified the notices issued in the case of other

Assessees mentioned above wherein Appeal in ITA No.

6121/Del/2025(TRDP Happy World Pvt. Ltd. A.Y 2021-22),

5756/Del/2025 (Malwa Packaging and 6916/Del/2025 (Vidya Polymer

(Rule 27 by the Assessee)) and found that identical notices have been

issued pursuant to mentioning the approval detail which is not at all

belongs to the respective Assessees.

8.

In view of the above, we find merits in legal Assessees’ ground No.

1 to 3 in ITA No. 6121, 5755/Del/2025 and the application filed under

Rule 27 of the Rules filed by the Assessee in ITA No.7998/Del/2025 and

6915/Del/2025, as the notices issued under Section 148 of the Act itself

is bad in law and without jurisdiction the respective notices issued u/s

148 of the Act against the Assessee for the respective year under

consideration, the subsequent Assessment Orders passed are hereby

quashed. Accordingly, Assessees’ ground No. 1 to 3 in ITA No. 6121,

5755/Del/2025 and the application filed under Rule 27 of the Rules filed

by the Assessee in ITA No.7998/Del/2025 and 6915/Del/2025 are

allowed and the respective assessment orders for the respective year

under consideration are hereby quashed.

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9.

Accordingly, Appeal of the Assessee in ITA No. 6121/Del/2025 (A.Y

2019-20) and ITA No. 5755/Del/2025 (A.Y 2021-22) are allowed.

10.

Since, we have allowed the Assessees’ Appeal for Assessment Year

2019-20 and 2021-22, Revenue’s Appeal in ITA No. 7889/Del/2025 and

ITA No. 7585/Del/2025 are dismissed.

11.

Since, we have allowed the application filed by the Assessee under

Rule 27 of the Rules in ITA No.7998/Del/2025 and 6915/Del/2025 and

quashed the assessment order, the Appeals of the Revenue render in-

fructuous. Accordingly, Revenue’s Appeal in ITA No.7998/Del/2025 and

6915/Del/2025 are dismissed.

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

Sd/- Sd/- (MANISH AGARWAL) (YOGESH KUMAR U.S.) ACCOUNTANT MEMBER JUDICIAL MEMBER Date:- 19.05.2026 Reshma Naheed, Sr.P.S Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT

ASSISTANT REGISTRAR ITAT, NEW DELHI

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