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Facts
The appeals involved challenges to the Commissioner of Income Tax (Appeals) common order concerning proceedings under section 147 read with section 144 of the Income-tax Act, 1961. The core issue revolved around the validity of the notices issued for reopening the assessment.
Held
The Tribunal held that the notices under section 148, though dated March 31, 2021, were issued/sent on April 1, 2021. Following the jurisdictional High Court's decision, it was determined that such notices issued on or after April 1, 2021, fall under the new regime and therefore, the notices issued under the old regime were quashed.
Key Issues
Validity of reassessment notices issued on or after 01.04.2021 under the old regime.
Sections Cited
147, 144, 148
AI-generated summary — verify with the full judgment below
These assessee’s and Revenue’s cross appeals ITA for assessment years 2017-18, are directed against the Commissioner of Income Tax (Appeals) [in short, the “CIT(A)”], New Delhi-23’s common order dated 13.02.2024 having DIN & Document No.
ITBA/APL/1/250/2023-24/1060864426(1) involving proceedings under section 147 r.w.s 144 of the Income-tax Act, 1961 (hereinafter referred to as ‘the Act’). The Revenue’s latter appeal for assessment Year 2016-17 is directed against the CIT(A), New Delhi-23’s order dated 13.02.2024 has DIN & Document No.: ITBA/APL/S/91/2023- 24/1060875637(1) involving proceedings under section 147 r.w.s 144 of the Act.
Heard both the parties. Case file perused.
It emerges that at the outset during the course of hearing that there arises the first and foremost issue of the validity of the impugned twin reopening(s) itself; be it in the assessee’s Rule-27 petition filed in the former Assessment Year 2016-17 or its appeal ITA 1615/Del/2024 for Assessment Year 2017-18, as the case may be. This is for the precise reason that the learned senior corresponding section 148 notices; both dated 31st March, 2021, had been issued/sent on 1st April, 2021 at 3:54:09 AM and 7:06:53AM; assessment year wise, respectively. The Revenue is indeed very fair before us in not rebutting this clinching factual position during the course of hearing.
We are of the considered view in this backdrop that hon’ble jurisdictional high court in recent landmark decision Suman Jeet Agarwal vs Income Tax Officer [2022] 449 ITR 517(Del) has settled the issue that not only such a notice u/s 148 could be treated as issued only after due dispatch but also the new regime kicks in on after issuance of all such notices as on 01.04.2021 and thereafter. That being the case, we find force in assessee’s vehement contentions to conclude that the learned lower authorities have erred in law and on facts in issuing the impugned twin notices to the assessee under old regime on or after 01/04/2021 in very terms. Quashed accordingly.
All other remaining pleadings between the parties stand rendered academic.
To sum up, the assessee’s appeal is accepted and the Revenue’s twin appeals and 2053/Del/2024 are dismissed in above terms. A copy of this common order be placed in the respective case files.
Order pronounced in the open court on 28th November, 2025.