P C SALES CORPORATION,DELHI vs. INCOME TAX OFFICER, WARD 63(1), DELHI

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ITA 4508/DEL/2025Status: DisposedITAT Delhi27 August 2025AY 2018-19Bench: Sh. Satbeer Singh Godara (Judicial Member)4 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 assessment order was invalid because the Assessing Officer failed to issue a mandatory notice under Section 143(2). This failure was considered a fatal flaw, as per the Supreme Court's decision in ACIT Vs. Hotel Blue Moon.

What were the facts?

The assessee's appeal arose from an order passed under Section 147 read with Section 144 of the Income Tax Act, 1961. The primary issue was the validity of the assessment order due to the absence of a notice issued under Section 143(2).

What were the issues?

Whether the assessment order is valid in the absence of a notice issued under Section 143(2) of the Income Tax Act, 1961, when the proceedings were initiated under Section 147.

Which sections of the Income-tax Act were involved?

Section 147,Section 144,Section 143(2),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 Appellant: CA &
Hearing: 27.08.2025Pronounced: 27.08.2025

Asstt. Year : 2018-19 P C Sales Corporation, Vs Income Tax Officer, 7650769, 1st Floor, Rishi Bhawan, Ward-64(4), Tilak Bazar, Delhi-110006 New Delhi-110002 (APPELLANT) (RESPONDENT) PAN No. AALFP6560F Assessee by: Sh. Sachin Kumar, CA & Sh. Achin Garg, Adv. Revenue by : Sh. Manoj Kumar, Sr. DR Date of Hearing: 27.08.2025 Date of Pronouncement: 27.08.2025 ORDER This assessee’s appeal for Assessment Year 2018-19, arises against the CIT(A)/NFAC, Delhi’s DIN & order No. ITBA/NFAC/S/250/2025-26/1078496193(1) dated 15.07.2025, in proceedings u/s 147 r.w.s. 144 of the Income Tax Act, 1961 (in short “the Act”).

2.

Heard both the parties at length. Case file perused.

3.

It emerges at the outset that there arises the first and foremost issue of validity of the learned Assessing Officer’s assessment herein dated 23.01.2024 itself for want of a notice issued u/s 143(2) in furtherance to the assessee’s letter dated 30.04.2022 making and clear that his return filed on 21.09.2018, be considered as that filed in section 148 compliance. It is made clear that the learned Assessing Officer P C Sales Corporation himself is very fair in having tabulated all the notices issued to the assessee in his assessment order wherein there is not even mention of section 143(2) process’s compliance.

4.

The above being the clinching factual position, I hereby quote ACIT Vs. Hotel Blue Moon (2010) 321 ITR 362 (SC) to quash impugned assessment itself on account of the learned Assessing Officer’s failure to issue section 143(2) notice which has been held as a mandatory compliance in hon’ble apex court’s landmark decision. Ordered accordingly.

5.

All other pleadings on merits stand rendered academic.

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