BHARTI PATWAL,HARYANA V. ITO, WARD 44(3), NEW DELHI.

ITA 2160/DEL/2024

AI Insights

The case involves Bharti Patwal, the appellant, contesting an assessment order issued by the Income Tax Officer (ITO), Ward 44(3), New Delhi, for the Assessment Year 2011-12. The appellant filed an appeal against the assessment order, which was initially delayed due to medical reasons. The Tribunal admitted the appeal after condoning the delay. The core issue in the appeal was the alleged non-service of a notice under Section 148 of the Income Tax Act, 1961, which was crucial for the validity of the assessment proceedings. The Tribunal, referencing the Supreme Court's decision in National Thermal Power Company Ltd. Vs. CIT, admitted the additional ground of appeal regarding the non-service of the notice and found the assessment order to be void ab initio due to this procedural irregularity.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 34415 (ITAT-DELHI)
• Duration Of Justice: 5 month(s) 28 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-10-2024
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Next Hearing Date: 23-10-2024
• Assessment Year: 2011-2012
• Appeal Filed On: 02-05-2024
• Other Referred Cases: National Thermal Power Company Ltd. Vs. CIT
• Laws Referred To: Income Tax Act 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SANJAY KUMAR
• Assessee Lawyers: VIVEK BANSAL
• Keywords: Condonation of delay
• Section: 148; 144

Judgement Text

"P a g e | 1 ITA No.2160/Del/2024 Bharti Patwal Vs. ITO, Ward 44(3) THE INCOME TAX APPELLATE TRIBUNAL “SMC” BENCH, DELHI BEFORE MS. MADHUMITA ROY, JUDICIAL MEMBER ITA No. 2160/Del/2024 (Assessment Year 2011-12) Bharti Patwal F-814, Jalvuyu Tower, Sector 56, Gurgaon Haryana 122001 Vs. ITO, Ward 44(3) New Delhi \u0001थायीलेखासं./जीआइआरसं./PAN/GIR No: AAOPP8338A Appellant .. Respondent Appellant by : Sh. Vivek Bansal, Adv Respondent by : Sh. Sanjay Kumar, Sr. DR Date of Hearing 24.10.2024 Date of Pronouncement 30.10.2024 O R D E R PER MADHUMITA ROY, JM: The appeal is barred by limitation for 60 days and the assessee has filed an application seeking condonation of delay in filing the appeal before us supported by medical documents and affidavit. The reason for delay narrated by the assessee in the said application is on medical ground the assessee became ill and was advised for bed rest for a period of 2 months and hence, the appeal was filed late. Such submissions made by the assessee as pointed out by the Ld. A.R has not been controverted by the Ld. D.R with all his fairness. As the reason narrated by the assessee for filing the appeal late seems to be genuine, the delay is condoned, the appeal is admitted. P a g e | 2 ITA No.2160/Del/2024 Bharti Patwal Vs. ITO, Ward 44(3) 2. The assessee has filed an application for additional ground alleging that the notice dated 28.03.2018 under Section 148 since never been served upon by the assessee, the assessment order is void-ab-initio and thus, liable to be quashed. 3. Since, the issue raised is legal one and there is no change of facts, keeping in view the ratio laid down by the Hon’ble Supreme Court in the case of National Thermal Power Company Ltd. Vs. CIT, reported in (1998) 229 ITr 383 (SC), the ground of appeal is admitted. 4. The assessee’s case is this that the initiation of proceeding though claimed to have been made by issuing of notice under Section 148 of the Income Tax Act 1961, dated 28.03.2018 by the Assessing officer on the ground of escaping ssessment for Assessment Year 2011-12 due to failure on the part of the assessee to disclose and fully and truly all material facts after obtaining the necessary approval the said notice since remained unserved which has duly been mentioned by the ld. AO at paragraph 2 in his order dated 10.12.2018 passed under Section 144 r.w.s 147 of the Act, the initiation of assessment is invalid. Consequently, the order of assessment upon making addition of Rs.27, 00,000/- is void ab initio and therefore, liable to be quashed. Such submission made by the assessee’s counsel has not been able to be controverted by the Ld. D.R. 5. Thus, having regard to the facts and circumstances of the matter particularly taking into consideration the notice under Section 148 dated 28.03.2018 since, admittedly, having been not served upon the assessee as it is evident from the impugned assessment order dated 10.12.2018, the initiation of proceeding under Section 148 is found to have no basis P a g e | 3 ITA No.2160/Del/2024 Bharti Patwal Vs. ITO, Ward 44(3) and thus, not sustainable in eyes of law. Consequently, the order of assessment is also found to be void ab initio and therefore, quashed. 6. The appeal of the assessee is allowed. Order pronounced in the open court on 30.10.2024 Sd/- (Madhumita Roy ) JUDICIAL MEMBER Dated 30.10.2024 PS: Rohit Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT ASSISTANT REGISTRAR ITAT NEW DELHI "