M/S GURUVAR BUILDWELL (P) LTD,NEW DELHI vs. ACIT , CENTRAL CIRLCE-25, DELHI

ITA 1879/DEL/2026Status: DisposedITAT Delhi30 September 2026AY 2018-195 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the ground relating to the initiation of proceedings under Section 147 of the Act being without jurisdiction is sustained. The Tribunal relied on the decision of the Hon'ble High Court in M/s L-1 Identity Solutions Operating Company Pvt. Ltd. The Court observed that for issuing a notice under Section 148 beyond three years, the conditions under Section 149(1)(b) must be satisfied, requiring the income escaping assessment to exceed Rs. 50 lakhs in respect of the specified assessment year. While Section 149(1A) allows for cumulative income escaping assessment across multiple years to exceed Rs. 50 lakhs, this is subject to the income being represented in the form of an 'asset' or 'expenditure in relation to an event or occasion'. In the present case, the Hon'ble High Court found no singular occasion or event that resulted in income of more than one previous year exceeding Rs. 50 lakhs. The Tribunal found that the Assessing Officer erred in proceeding on the basis that it was open to add income alleged to have escaped assessment for different previous years to determine the threshold figure of Rs. 50 lakhs. Consequently, the assessment order was quashed.

What were the facts?

The assessee, M/s Guruvar Buildwell (P) Ltd., is in appeal against the order dated 06.02.2026 passed by the CIT(A)-29, New Delhi. The assessment order dated 15.03.2025 was passed by the ACIT, Central Circle-25, New Delhi, under Section 147 of the Income Tax Act, 1961, for Assessment Year 2018-19. The reopening was based on the allegation that the assessee received accommodation entries from M/s Sirsa Deposits and Advances Ltd. for Rs. 25,00,000/- in FY 2017-18 and Rs. 50,00,000/- in FY 2018-19, totaling Rs. 75,00,000/-. The assessment resulted in additions of Rs. 75,000/- under Section 69C, Rs. 25,00,000/- under Section 68, Rs. 1,62,51,990/- on account of other loans and advances, and Rs. 1,71,199/- on account of payables.

What were the issues?

1. Whether the initiation of proceedings under Section 147 and completion of assessment under Section 147/143(3) of the Act were without jurisdiction and liable to be quashed? Assessee's contention: The assessee argued that the initiation of proceedings under Section 147 of the Act was without jurisdiction. The reasons recorded for reopening alleged receipt of accommodation entries totaling Rs. 75,00,000/- across FY 2017-18 and 2018-19. The assessee relied on the decision of the Hon'ble High Court in M/s L-1 Identity Solutions Operating Company Pvt. Ltd. (W.P.(C) 4845/2025) to argue that the cumulative income escaping assessment across different assessment years cannot be aggregated to meet the threshold of Rs. 50 lakhs under Section 149(1)(b) unless it pertains to a singular event or asset. Revenue's contention: The Revenue asserted that there was no deficiency in the assumption of jurisdiction. It was argued that the cumulative value of income which has escaped assessment should be construed for the purpose of satisfying the conditions of Section 149(1)(b) of the Act.

Which sections of the Income-tax Act were involved?

Section 147,Section 143(3),Section 149,Section 148,Section 69C,Section 68,Section 149(1)(b),Section 149(1A)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCHES, NEW DELHI

Before: SHRI ANUBHAV SHARMA & SHRI SANJAY AWASTHI

Pronounced: 30.09.2026

PER SHRI ANUBHAV SHARMA, JUDICIAL MEMBER:

This appeal is preferred by the assessee against the order dated 06.02.2026 of the Ld. Commissioner of Income Tax (Appeals)-29, New Delhi (hereinafter referred as Ld. First Appellate Authority or in short Ld. ‘FAA’) in Appeal No: CIT(A), Delhi-29, 10800/2017-18 arising out of the assessment

ITA 1879/DEL/2026 M/S GURUVAR BUILDWELL (P) LTD

order dated 15.03.2025 u/s 147 of the Income Tax Act, 1961 (her

The order continues below.

Read the full judgment

A free account opens 10 full judgments a month. Re-reading one you have already opened does not count again.

Create a free accountSign in

See plans and prices

The summary, the parties, the sections and the citations above are open to everyone and always will be. Only the text of the order and the PDF are metered.

More judgments on Section 147

All 49,210 judgments and leading authorities on Section 147 →

Recent GST High Court judgments

Search GST case law →