RAJESH M.DUDANI vs. DCIT, CC 18,

ITSSA 246/DEL/2006Status: DisposedITAT Delhi17 September 20256 pages
AI SummaryAllowed

What were the facts?

This appeal by the Assessee, Mr. Rajesh M. Dudani, is against the order of the CIT(A)-III, New Delhi, dated 31.10.2006, which arose from a block assessment completed under Section 158BC/158BA of the Income Tax Act, 1961, on 09.12.2004. The assessment years covered are from 01.04.1996 to 18.12.2002. The assessee raised five grounds of appeal, including challenges to additions made for un-explained commission, un-explained cash, net receivable, and determination of turnover. Crucially, the assessee also sought to raise an additional ground regarding the assessment order being without jurisdiction due to the non-issuance of a notice under Section 143(2) of the Act.

What did the Tribunal hold?

The Tribunal admitted the additional ground regarding the non-issuance of a notice under Section 143(2) of the Act, finding that it goes to the root of the matter and concerns the assumption of jurisdiction. The Tribunal noted that the Revenue admitted that no notice under Section 143(2) was issued. Relying on the decision of the Hon'ble Delhi High Court in CIT Vs. Delhi Kalyan Samiti, the Tribunal held that the non-issuance of a Section 143(2) notice is mandatory when the Assessing Officer does not accept the return on its face value, and its absence vitiates the entire proceedings. The Tribunal found no merit in the Revenue's contention that the return was non-est, especially since the assessment order itself mentioned the issuance of notices under Sections 142(2) and 143(2). Consequently, the Tribunal quashed the impugned assessment order. The other grounds of appeal concerning additions on merits were not decided as the appeal was allowed on the jurisdictional issue.

What were the issues?

1. Whether the assessment order passed by the Assessing Officer is without jurisdiction and void ab initio due to the non-issuance of a notice under Section 143(2) of the Income Tax Act, 1961, subsequent to the filing of the Return of Income. (Question of law). The Assessee contended that the non-issuance of a Section 143(2) notice vitiates the entire proceedings, relying on CIT Vs. Delhi Kalyan Samiti. The Revenue argued that the assessee is estopped from raising this ground as a similar application was withdrawn previously and that the return filed by the assessee was non-est, thus negating the need for a Section 143(2) notice. The Revenue also pointed to the notice issued under Section 158B and the timing of the return filing. 2. Whether the additions made on account of un-explained commission, un-explained cash, net receivable, and determination of turnover are justified. (Mixed question of law and fact). The Assessee challenged these additions, while the Revenue sought to uphold them.

Which sections of the Income-tax Act were involved?

Section 158BC,Section 158BA,Section 143(2),Section 142(1),Section 144,Section 153A,Section 147,Section 148(1),Section 158B,Section 132(1)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCHES, ‘F’ BENCH, NEW DELHI

Before: SHRI ANUBHAV SHARMA

For Respondent: Ms. Monika Singh, CIT DR
Hearing: 21/07/2025Pronounced: 17/09/2025

PER ANUBHAV SHRAMA, JM: The present appeal is filed by the Assessee against the order of Ld. Commissioner of Income Tax (Appeals)-III, New Delhi dated 31.10.2006 arising out of impugned assessment completed u/s 158BC/158BA of the Income Tax Act 1961 dated 9.12.2004. 2. The assessee has raised following grounds of appeal :-

1.

"That Ld. Revenue Authority has wrongly confirmed the addition of Rs. 31,384/- as un-explained commission payment.

2.

That Ld. Revenue Authority has wrongly confirmed the addition at Rs. 6,60,000/- on account of un-explained cash found at the time of search.

3.

That Ld. Revenue Authority has wrongly confirmed th

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 158BC

All 433 judgments and leading authorities on Section 158BC →

Recent GST High Court judgments

Search GST case law →