DCIT, NEW DELHI V. SH. P.K. SHARMA, NEW DELHI

ITSSA 2/DEL/2015

AI Insights

The case involves the Deputy Commissioner of Income Tax (DCIT) and Sh. P. K. Sharma, concerning assessments made for the block period from April 1, 1987, to May 8, 1997. The Revenue appealed against the CIT(A)'s decision which had quashed the assessment order initially passed under Section 158 BC of the Income Tax Act, 1961. The High Court had earlier granted the Revenue the liberty to initiate proceedings against the assessee, which led to the reassessment. However, the CIT(A) later quashed this reassessment, a decision not appealed by the Revenue, leading to the current proceedings where the Tribunal dismissed the Revenue's appeal, citing lack of jurisdiction in the reassessment.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 823208 (ITAT-DELHI)
• Duration Of Justice: 10 year(s) 4 month(s) 19 day(s)
• Appeal Type: Income Tax (Search & Seizure) Appeal
• Pronouncement Date: 23-12-2025
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: F
• Assessment Year: misc
• Appeal Filed On: 03-08-2015
• Other Referred Cases: Kuber Floritech Ltd. vs. Revenue
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: MONIKA SINGH
• Assessee Lawyers: RAJ KUMAR; J. P.SHARMA
• Keywords: Reassessment proceedings
• Section: 147; 143(3)

Judgement Text

"1 IT(SS)A No. 2/Del/2015& C.O No.68/Del/2016 DCIT VS. Sh. P. K. Sharma IN THE INCOME TAX APPELLATE TRIBUNAL DELHI (DELHI BENCH ‘F’ NEW DELHI) BEFORE SHRI YOGESH KUMAR U.S., JUDICIAL MEMBER AND SHRI NAVEEN CHANDRA, ACCOUNTANT MEMBER IT(SS) A No. 2/Del/2015 (A.Y. 01/04/1987 to 08/05/1997) DCIT Circle 14(2) New Delhi Vs P. K. Sharma (through L/H Ms. Rowena Sharma) S-32, G. K01, New Delhi PAN: ABIPS8092F Appellant Respondent C.O No. 68/Del/2016 (in IT(SS)A No. 2/Del/2015) P. K. Sharma (through L/H Ms. Rowena Sharma) S-32, G. K01, New Delhi PAN: ABIPS8092F Vs DCIT Circle 14(2) New Delhi Appellant Respondent Assessee by Sh. Rajkumar, CA & Sh. J. P. Sharma, Adv Revenue by Ms. Monika Singh, CIT-DR Date of Hearing 20/11/2025 Date of Pronouncement 23/12/2025 ORDER PER YOGESH KUMAR, U.S. JM: The captioned Appeal is filed by the Revenue and Cross Objection filed by the Assessee challenging the order of Ld. Commissioner of Income Tax (Appeals)-V, New Delhi (Ld. CIT(A)’ for short), dated 06/05/2015 pertaining toBlock Period 01/04/1987 to 08/05/1997. 2.Heard both the parties and perused the material. The Hon'ble High Court vide Judgment dated 07/08/2009 in ITA No. 516/2009 in the case of Kuber Floritech Ltd., extended the liberty to the Printed from counselvise.com 2 IT(SS)A No. 2/Del/2015& C.O No.68/Del/2016 DCIT VS. Sh. P. K. Sharma Revenue to initiate proceedings against the Assessee. For the sake of convenience, the operative portion of the Judgment of Hon'ble High Court of Delhi dated 07/08/2009 is reproduced as under:- “Thus, when the Department is not remediless and the contentions of the Assessee that these shares were purchased by sh. P. K. Sharma and in that situation, additions should have been made in the hands of Sh. P. K. Sharma and not in the case of the Assessee, it would be open to the Revenue to initiate proceedings by treating the same under Section 153(3) of the Act as income in the hands of Sh. P. K. Sharma, in accordance with law.” 3. Based on the above liberty extended by the Hon'ble High Court, Ld. A.O. framed an assessment u/s 158 BC of the Income Tax Act, 1961 ('Act' for short) on 22/12/2010. The said assessment order dated 22/12/2010 has been challenged by the Assessee before the Ld. CIT(A). The Ld. CIT(A) vide order dated 29/07/2011, quashed the assessment in following manners:- “What was required to be done at the level of the A.O. was to first initiate reassessment proceedings and then follow the assessment proceedings. However, a perusal of records reveals that the A.O. has not initiated any reassessment proceedings either u/s 147/148 read with Section 153(3) or u/s 158 BC of the I.T Act. Instead, he has straight away issued notice u/s 143(2) dated 01/02/2010 as if the assessment in the case of the appellant was set-aside by the Hon'ble High Court. Which, in my view, was not possible under the law.” Printed from counselvise.com 3 IT(SS)A No. 2/Del/2015& C.O No.68/Del/2016 DCIT VS. Sh. P. K. Sharma 4. It is observed that the Department chose not to file Appeal against the order of the Ld. CIT(A) dated 29/07/2011. However, once again assessment proceedings u/s 147 r.w. Section 143(3) of the Act has been initiated against the Assessee and vide assessment order dated 30/03/2013passed under Section147 r.w. Section 143(3) of the Act, made certain additions. The said assessment order dated 30/03/2013 has been called in question by the Assessee before the Ld. CIT(A) and the Ld. CIT(A) vide order dated 06/05/2015, allowed the Appeal of the Assessee on merits. Aggrieved by the order of the Ld. CIT(A) dated 06/05/2015, the Department preferred the present Appeal and Assessee has also filed the Cross Objection. 5. In the present case, there is no dispute that in view of the liberty granted by the Hon'ble High Court vide its Judgment dated 07/08/2009, A.O. passed an assessment order on 22/12/2010 under Section u/s 158 BC of the Act. Subsequently the said assessment order dated 22/12/2010 has been quashed by the Ld. CIT(A) vide order dated 06/05/2015. The Revenue chose not to file Appeal against the order of the Ld. CIT(A) dated 06/05/2015. Since no Appeal has been filed by the Department and accepted the order of the Ld. CIT(A) dated 06/05/2015, there Printed from counselvise.com 4 IT(SS)A No. 2/Del/2015& C.O No.68/Del/2016 DCIT VS. Sh. P. K. Sharma is no room for the Revenue to once again proceed u/s 147 r.w. Section 143(3) of the Act and to frame the assessment. In view of the same, we are of the opinion that the framing of assessment order under Section 147 r.w. Section 143(3) of the Act dated 30/03/2013 itself is erroneous and without jurisdiction. Thus, we find no merits in the Appeal of the Revenue. Accordingly, appeal of the Revenue in IT(SS)A No. 2/Del/2015 is hereby dismissed. Since we have dismissed the Appeal of the Revenue, the C.O No. 68/Del/2016 filed by the Assessee is dismissed as in-fructuous. Order pronounced in the open court on 23rd December, 2025 Sd/- Sd/- (NAVEEN CHANDRA) (YOGESH KUMAR U.S.) ACCOUNTANT MEMBER JUDICIAL MEMBER Date:-23.12.2025 R.N, Sr.P.S* Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT ASSISTANT REGISTRAR ITAT, NEW DELHI Printed from counselvise.com 5 IT(SS)A No. 2/Del/2015& C.O No.68/Del/2016 DCIT VS. Sh. P. K. Sharma Printed from counselvise.com "