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Facts
The department filed appeals against orders of the CIT(A) that allowed appeals of the assessees, setting aside assessment orders based on notices under Section 148 of the Income Tax Act. The CIT(A) orders were based on the High Court decision in Shyam Sunder Khandelwal. The department also issued notices under Section 153C before filing these appeals.
Held
The Tribunal held that the issuance of notices under Section 153C by the department after the CIT(A) had passed orders and before the department filed its appeals, indicated acceptance of the CIT(A) orders. Therefore, the department's appeals were not maintainable.
Key Issues
1. Maintainability of appeals filed by the department when Section 153C notices were issued post-CIT(A) order. 2. Legality of Section 148 notices in light of High Court pronouncements.
Sections Cited
250, 148, 271(1)(c), 153C, 153CA, 147
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Income Tax Appellate Tribunal, JAIPUR BENCHES,”A-Bench” JAIPUR
Before: SHRI RATHOD KAMLESH JAYANTBHAI, AM & SHRI NARINDER KUMAR, JM vk;dj vihy la-@ITA No. 792 to 795/JPR/2025
to 805 & 956/JPR/2025 Usha Golcha & Ors., Jaipur. fu/kZkfjrh dh vksj ls@Assessee by : Sh. A.B. Dangayach, C.A. jktLo dh vksj ls@Revenue by: Mrs. Anita Rinesh, JCIT, Sr. DR lquokbZ dh rkjh[k@Date of Hearing : 07/08/2025 mn?kks"k.kk dh rkjh[k@Date of Pronouncement: 11/08/2025 vkns'k@ORDER Per Bench: This common order is to dispose of the above captioned 15 appeals filed by the department, as common issue as to the maintainability of these appeals is involved, and same arguments have been advanced.
Department-appellant has challenged orders, passed by Learned CIT(A), u/s 250 of the Income Tax Act, 1961 (hereinafter referred to as “the Act”), whereby 14 appeals filed by the above named assesses- respondents, relating to the above captioned respective assessment year(s) have been allowed, and the assessment orders, have been set aside, while observing that notices u/s 148 of the Act, issued to the assessee were not maintainable legally, in view of decision by the Hon’ble High Court in Shyam Sunder Khandelwal vs. Assistant Commissioner of Income Tax, (2024) 161 taxmann.com 255 (Rajasthan), D.B. Civil Writ Petition No. 18363/2019; and, furthermore, 1 other appeal filed by Surendra Kumar Golcha, assessee, challenging the penalty order passed to 805 & 956/JPR/2025 Usha Golcha & Ors., Jaipur. under section 271(1)(c) of the Act has also been allowed while setting aside the penalty order. Condonation of delay in filing of 14 appeals- to 805/JPR/2025.
With these 14 appeals, department has filed separate applications, seeking condonation of delay. Ground for condonation of delay is that copy of the impugned order(s) passed by the Learned CIT(A) was received at the office of Learned PCIT, whereupon CSR with recommendation of appeal was sent to the office of Learned PCIT; thereupon authorization was received but still appeals could not be filed within the prescribed period of limitation, due to non availability of old assessment records.
Admittedly, the appeals were to be presented within 60 days from the date on which copy of the impugned order(s), passed by Learned CIT(A) was received in the office of Learned PCIT, Jaipur. As claimed by the department, copy of the impugned order(s), passed by Learned CIT(A) was received in the office of Learned PCIT, Jaipur on 07.01.2025 . There is no dispute about the dispatch of CSR with recommendation for filing of the appeals on 21.03.2025, and also that authorization for filing to 805 & 956/JPR/2025 Usha Golcha & Ors., Jaipur. of the appeal was received on 24.03.2025. Keeping in view the number of the impugned orders and the issue involved, it appears that processing must have taken time to prepare CSR with recommendation for filing of appeals.
As regards averment by the department regarding non availability of old assessment record, the applicant should have specified as to which record was not available.
Be that as it may, some of the 14 appeals, came to be filed on 19.05.2025, whereas others were filed on 20.05.2025. When the authorization for filing of appeals were received from the office of Learned PCIT, Jaipur, on 24.03.2025, department required, and it must have taken, time for drafting/preparation of appeals. In the given situation, we deem it a fit case to admit the appeals, We order accordingly. On the issue of maintainability of the 15 appeals-in the face of notice(s) under section 153C of the Act 7. Ld. DR for the department has stated at the Bar about issuance of notice(s) u/s 153C r.w.s. 153CA of the Act by the department to the assesses named above, even before filing of these appeals. to 805 & 956/JPR/2025 Usha Golcha & Ors., Jaipur.
In the course of arguments, Ld. DR for the department has submitted that the notice(s) u/s 153C of the Act came to be issued to the assessee(s) in compliance with the decision by the Hon’ble High Court in Shyam Sunder Khandelwal case (supra). As regards filing of these appeals, Learned DR has tried to justify their filing while submitting that present appeals came to be filed as notice(s) u/s 148 of the Act were correctly and legally issued to the assesses on the basis of “information received”, and provisions of section 153C were not applicable to said cases.
Relevant portion of the decisions by Learned CIT(A), is reproduced hereunder:- “4.2.9 Considering the facts of the present case, it is noticed that the case of the appellant was also reopened u/s 148 of the I.T. Act, 1961 by the Id. AO on the basis of information of advancing of unaccounted cash loans by the appellant through the broker Sh. Ramesh Chand Maheshwari and on the basis of seized material during the course of search proceedings in the Ramesh Manihar Group. 4.2.10 In the light of the above decision, as the facts of the present case are similar, hence the above judgement of Hon'ble High Court is squarely applicable in the present case of the appellant. 4.2.11 Accordingly, the order passed by the AO u/s 147 of the I.T.Act, 1961 has become ineffective as on date as the Hon'ble High Court Rajasthan has quashed the notice u/s 148 of the I.T. Act, 1961 and impugned orders in the cases which were re-opened on the basis of seized material during the course of search proceedings in the Ramesh Manihar Group. 4.2.12 In these circumstances, the assessment order u/s 147 of the I.T.Act, 1961 under challenge in present appeal does not survive, the assessment order to 805 & 956/JPR/2025 Usha Golcha & Ors., Jaipur. passed by the AO has become infructuous, Hence the ground of appeal challenging the legality of notice issued u/s 148 of the Act is hereby allowed.”