DY. COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE - 3, DELHI vs. RAJ KUMAR KEDIA HUF, DELHI

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ITA 1358/DEL/2024Status: DisposedITAT Delhi20 March 2025AY 2011-12Bench: Sh. Satbeer Singh Godara, Judicial Member & Sh. Amitabh Shukla (Accountant Member)3 pages

In favour of the assessee: the Revenue's appeal was dismissed. From the AI summary of this appeal.

AI SummaryDismissed

What did the Tribunal hold?

The Tribunal found that the Assessing Officer's reasons for reopening were factually incorrect and that the approval under Section 151 was mechanical. Therefore, the reopening was quashed.

What were the facts?

The Revenue appealed against an order of the CIT(A) concerning assessment year 2011-12. The assessee's cross-objection challenged the validity of the reopening of assessment.

What were the issues?

The primary issue was the validity of the reopening of assessment initiated beyond four years, considering the factual inaccuracies in the reopening reasons and the mechanical approval obtained.

Which sections of the Income-tax Act were involved?

Section 147,Section 144,Section 151

AI-generated summary — verify with the full judgment below

Cases cited in this judgment(2)Show list

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

Before: Sh. Satbeer Singh Godara&

For Appellant: CA &
Hearing: 20.03.2025Pronounced: 20.03.2025

Heard together (2 matters)

ITA No. 1358/Del/2024
CO No. 41/Del/2024

Read from the judgment's own cause title. This page is filed under one of them.

Asstt. Year: 2011-12 DCIT, Vs Raj Kumar Kedia HUF, Central Circle-3, 59/17, Bahubali Apartment, New New Delhi-110055 Rohtak Road, Karol Bagh, New Delhi-110005 (APPELLANT) (RESPONDENT) PAN No. AAKHR2602D CO No. 41/Del/2024 : Asstt. Year: 2011-12 Raj Kumar Kedia HUF, Vs DCIT, 59/17, Bahubali Apartment, New Central Circle-3, Rohtak Road, Karol Bagh, New Delhi-110055 New Delhi-110005 (APPELLANT) (RESPONDENT) PAN No. AAKHR2602D Assessee by : Sh. Amit Goel, CA & Sh. Pranav Yadav, Adv. Revenue by : Sh. Sunil Yadav, CIT-DR Date of Hearing: 20.03.2025 Date of Pronouncement: 20.03.2025 ORDER

Per Satbeer Singh Godara, Judicial Member:

1.

This Revenue’s appeal and assessee’s cross objection CO No. 41/Del/2024 for Assessment Year 2011-12 arises against the CIT(A)-23, New Delhi’s in case No. CIT(A), Delhi-17/10214/2018-19 dated 03.01.2024, in proceedings u/s 147 r.w.s. 144 of the Income Tax Act, 1961 (in short “the Act”).

3.

It emerges at the outset that the assessee’s cross objection CO No. 41/Del/2024 inter alia raises various legal grounds challenging validity of the impugned reopening going to the root of the matter. Learned counsel takes us to the assessee’s paper book comprising of the Assessing Officer’s reopening reasons dated 28.03.2018 (Pages 23-24) observing therein that it was not assessed either u/s 143(3) or u/s 147 of the Act after having filed the return on 20.07.2011.

4.

We next find that the same indeed goes against the factual position on record as the learned Assessing Officer had framed his section 143(3) assessment in assessee’s case on 06.01.2014 (pages 26 to 27 in the paper book). This is indeed coupled with the fact that the learned prescribed authority approval u/s 151 of the Act has recorded it’s satisfaction as “Yes I am satisfied……………..”

5.

Faced with this situation, we reject the Revenue’s vehement contentions supporting the impugned reopening initiated beyond a period of four years from the end of the relevant assessment year i.e. year 2018 by placing reliance in Hindustan Lever Ltd vs. R. B. Wadkar, ACIT (2004) 268 ITR 332 CO No. 41/Del/2024 Raj Kumar Kedia HUF (Bom) that the Assessing Officer’s reopening reasons have to be read as on standalone basis without any scope therein for further addition or substitution therein. We also deem it appropriate to conclude that the learned prescribed authority section 151 approval (supra) is also found to be mechanical in nature as per CIT vs. S. Goyanka Lime and Chemical Ltd. (2023) 453 ITR 242 (SC). The impugned reopening forming subject matter of our adjudication is quashed in very terms. The assessee succeeds in CO No. 41/Del/2024 and the Revenue’s appeal stands dismissed.

6.

All other pleadings on merits stand rendered academic.

7.

To sum up, this Revenue’s appeal

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