DEPUTY COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE-4(2), KOLKATA, KOLKATA vs. KAMMNA AUTOPART SALES PRIVATE LIMITED, KOLKATA

ITA 2337/KOL/2025Status: DisposedITAT Kolkata07 October 2026AY 2013-149 pages
AI SummaryDismissed

What did the Tribunal hold?

The Tribunal held that the notice issued under Section 148 of the Income-tax Act, 1961, was void ab initio and without jurisdiction. The reasoning was that a search was conducted on the assessee on 12.02.2020. The assessment year under appeal, AY 2013-14, falls within the extended 'relevant assessment year' contemplated in Section 153A(1) of the Act, specifically within the ten assessment years preceding the assessment year relevant to the previous year of search (AY 2020-21). The mandatory conditions of the fourth proviso to Section 153A, including the asset representation of income exceeding Rs. 50 lakh and requisite satisfaction and approval, were met. The Tribunal emphasized that Section 153A is a self-contained code for search assessments and has an overriding effect on general reassessment provisions like Section 148. Since the reopening was admittedly founded on search material, the case squarely fell within the domain of Section 153A alone. Therefore, the notice under Section 148 and all subsequent proceedings were quashed. The ground raised under Rule 27 was allowed, rendering the Revenue's appeal infructuous.

What were the facts?

The Revenue filed an appeal against the order of the CIT(A) for AY 2013-14, with a delay of 76 days which was condoned. The Revenue challenged the partly deletion of an addition of ₹9,56,65,000. The Assessee, through an application under Rule 27 of the ITAT Rules, challenged the assessment framed by the AO under Section 147, arguing it should have been under Section 153A. The basis for reopening was a search conducted on 11.02.2020. The AO had issued a notice under Section 148 dated 31.03.2021, proposing an addition of ₹10,07,00,000 as unexplained cash credit under Section 68, which the assessee contended was a change of opinion and that the original assessment under Section 143(3) had accepted these transactions.

What were the issues?

1. Whether the Assessing Officer erred in issuing a notice dated 31.03.2021 under Section 148 of the Income-tax Act, 1961, instead of initiating proceedings under Section 153A of the Act, given that the basis for reopening was a search conducted on 11.02.2020. Assessee's Contention: The AO erred by issuing a notice under Section 148 as the reopening was based on information from the search conducted on 11.02.2020. Proceedings should have been initiated under Section 153A, making the Section 148 notice and subsequent proceedings void ab initio. The addition of ₹10,07,00,000 under Section 68 was also a change of opinion, as the transactions were verified and accepted in the original assessment under Section 143(3). Revenue's Contention: The Revenue's DR left the issue to the wisdom of the bench, admitting that this ground was not raised before the CIT(A) and was not decided. The DR prayed that the ground be restored to the CIT(A) for adjudication.

Which sections of the Income-tax Act were involved?

Section 147,Section 148,Section 153A,Section 68,Section 132,Section 143(3)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “B” BENCH, KOLKATA

For Appellant: Shri Amit Agarwal, AR
For Respondent: Shri Sanjit Kumar Das, DR
Hearing: 20.08.2026Pronounced: 07.10.2026

Per Rajesh Kumar, AM:

This is an appeal preferred by the Revenue against the order of the Commissioner of Income-tax (Appeals), Kolkata- 27, (hereinafter referred to as the “Ld. CIT(A)”] dated 22.04.2025 for the AY 2013-14. 2. At the outset, we observe from the appeal folder that there is a delay of 76 days in filing the appeal by the department in support of which a condonation petition was filed. It was stated in the condonation petition that the delay has occurred due to obtaining the administrative approvals from the KammnaAutopart Sales Private Limited; A.Y. 2013-14 competent authorities, which took quite a long time and accordingly, t

The order continues below.

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