KARMIC BUSINESS SPECIALITIES PVT. LTD.,NEW DELHI vs. ACIT, CIRCLE-14(1), NEW DELHI

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ITA 2395/DEL/2019Status: DisposedITAT Delhi08 October 2025AY 2009-10Bench: Sh. Satbeer Singh Godara (Judicial Member)2 pages

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

AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the impugned reopening was not based on any incriminating material, which is a mandatory condition as per the Supreme Court's decision in PCIT vs. Abhisar Buildwell Pvt. Ltd. Therefore, the Tribunal found no merit in the lower authorities' action.

What were the facts?

The assessee filed an appeal against the reopening of assessment for AY 2009-10 under Section 147 read with Section 143(3) of the Income Tax Act. The reopening was based on investigations by departmental authorities, not on any incriminating material found during a search.

What were the issues?

Whether reopening of assessment under Section 147 is valid without incriminating material found during a search.

Which sections of the Income-tax Act were involved?

Section 147,Section 143(3),Section 153C,Section 148

AI-generated summary — verify with the full judgment below

Cases cited in this judgment(1)Show list

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

Before: Sh. Satbeer Singh Godara

For Respondent: Ms. Ambika Agarwal, Sr. DR
Hearing: 08.10.2025Pronounced: 08.10.2025

ORDER This assessee’s appeal for Assessment Year 2009-10, arises against the CIT(A)-5, New Delhi’s in case No. Del/CIT(A0-5/0034/2017-18 dated 21.02.2019, in proceedings u/s 147 r.w.s. 143(3) of the Income Tax Act, 1961 (in short “the Act”).

2.

Heard both the parties at length. Case file perused.

3.

It transpires during the course of hearing that both the learned lower authorities had set into motion section 148/147 proceedings against the assessee to reopen the earlier assessment dated 30.12.2016 framed in it’s case u/s 153C r.w.s. 143(3) of the Act.

4.

It is in this factual backdrop that the tribunal sought to verify as to whether the impugned reopening is based on any incriminating material or not which found a mandatory condition in a search assessment settled as per hon’ble apex court’s landmark decision in PCIT vs. Abhisar Buildwell Pvt. Ltd. (2023) 454 ITR 212 (SC). No satisfactory answer has come from the Revenue side since the impugned reopening is based on some investigations carried by the learned departmental authorities than any incriminating material found during the course of the search.

5.

This being the clinching factual position, the tribunal hereby seeks no merit in the learned lower authorities’ action initiating the impugned reopening against the assessee. The same stands quashed in very terms.

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