DEPUTY COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE-20, JHANDEWALAN V. KRSKA CAPITAL PRIVATE LIMITED , DELHI

ITA 4698/DEL/2025

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The case involves KRSKA Capital Pvt. Ltd., which faced a reassessment order for the assessment year 2017-18 issued by the National Faceless Assessment Centre, New Delhi. The reassessment was challenged on the grounds that the notice under section 148 was issued beyond the statutory time limit and without the appropriate approval from the competent authority. The Tribunal examined the chronology of events, including the issuance of notices and the relevant judicial precedents, particularly the Supreme Court's decision in Union of India Vs. Rajiv Bansal, which influenced the interpretation of the time limits for issuing reassessment notices.

• Counselvise Citation: [2026] 140 COUNSELVISE.COM (IT) 834627 (ITAT-DELHI)
• Duration Of Justice: 6 month(s) 5 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-02-2026
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2017-2018
• Appeal Filed On: 30-07-2025
• Other Referred Cases: Union of India Vs. Rajiv Bansal (2024) 469 ITR 46 (SC)
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SANJAY KUMAR
• Assessee Lawyers: RAJESH KUMAR DHANESTA
• Keywords: Competent authority
• Section: 147; 148

Judgement Text

"P a g e | 1 ITA No. 4698/Del/2025 CO 286/Del/25 KRSKA Capital Pvt.ltd. (AY: 2017-18) IN THE INCOME TAX APPELLATE TRIBUNAL “B” BENCH, DELHI BEFORE SHRI ANUBHAV SHARMA, JUDICIAL MEMBER & SHRI MANISH AGARWAL, ACCOUNTANT MEMBER ITA No.4698/Del/2025 (Assessment Years: 2017-18) DCIT, Central Circle-20 Room No. 269A, Second Floor, ARA Centre, Jhandewalan Extn. Delhi – 110055 Vs. KRSKA Capital Pvt. Ltd. 973, 9th Floor, Aggarwal Cyber Plaza-II, Netaji Subhash Place, Pitampura Delhi – 110034 \u0001थायीलेखासं./जीआइआरसं./PAN/GIR No: AAACR0135N Appellant .. Respondent C.O. No.286/Del/2025 Arising out of ITA No.4698/Del/2025 (Assessment Year: 2017-18) KRSKA Capital Pvt. Ltd. 973, 9th Floor, Aggarwal Cyber Plaza-II, Netaji Subhash Place, Pitampura Delhi – 110034 Vs. DCIT, Central Circle-20 Room No. 269A, Second Floor, ARA Centre, Jhandewalan Extn. Delhi – 110055 \u0001थायीलेखासं./जीआइआरसं./PAN/GIR No: AAACR0135N Appellant .. Respondent Appellant by : Sh. Sanjay Kumar, CA Sh. Udayan Garg, CA Respondent by : Sh. Rajesh Kumar Dhanesta, Sr. DR Printed from counselvise.com P a g e | 2 ITA No. 4698/Del/2025 CO 286/Del/25 KRSKA Capital Pvt.ltd. (AY: 2017-18) Date of Hearing 29.01.2026 Date of Pronouncement 04.02.2026 O R D E R PER ANUBHAV SHARMA, JM: This appeal and cross objection preferred by the Assessee and the revenue against the order dated 22.04.2025 of the Ld. CIT(A)-27, New Delhi (hereinafter referred to as the First Appellate Authority or ‘the ld. FAA’ for short) in DIN & Order No : ITBA/APL/M/250/2025-26/1075794377(1) arising out of the assessment order dated 29.05.2023 u/s 147 r.w.s 144B of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) passed by the National Faceless Assessment Centre, New Delhi for AY: 2017-18. 2. At the time of hearing ld. Counsel has pointed out that assessee has raised cross objection on the basis that reassessment framed is liable to be quashed for the reason that notice u/s 148 for relevant AY: 2017-18 was issued beyond surviving time limit and is hit by Hon’ble Supreme Court decision in the case of Union of India Vs. Rajiv Bansal (2024) 469 ITR 46 (SC). Printed from counselvise.com P a g e | 3 ITA No. 4698/Del/2025 CO 286/Del/25 KRSKA Capital Pvt.ltd. (AY: 2017-18) 3. Ld. Counsel has appreciated from the material on record the dates and chronology of events and for convenience we reproduce the same: Sr. No. Particulars Dates 1. Assessment Year 2017-18 2. First Notice issued U/s 148 under old regime (pg. 27 of PB) 30.06.2021 3. Extended deadline to issue notice U/s 148 under old regime, as per TOLA and notifications issued 30.06.2021 4. Surviving Time Limit (30.06.2021 to 30.06.2021) 5. Date of SC order in Ashish Agarwal’s case 04.05.2022 6. Date of providing information/notice U/s 148A(b) in pursuance of Ashish Agarwal’s case (pg. 31-33 of PB) 21.05.2022 7. Time limit of file the reply as U/s 148A(b) i.e., within 2 weeks 07.06.2022 8. Reply filed by the assessee (pg. 34-47 of PB) 07.06.2022 9. Time excluded as per Rajeev Bansal’s case 30.06.2021 to 07.06.2022 10. Time that was available/left to issue notice U/s 148 as TOLA limit 0 day 11. Extended time to be given as per fourth Proviso to section 149(1) 7 days 12. Time limit to issue notice U/s 148 as per section 149 (as amended by Finance Act, 2021 and as per Rajeev Bansal’s case) i.e., 7 days from 07.06.2022 14.06.2022 13 Order passed u/s 148A(d) was passed with prior approval of Pr. CIT-4,Delhi (pg. 48-50 of PB) 29.07.2022 14 Notice U/s 148 issued with prior approval of Pr. CIT-4, Delhi accorded on 22.07.2022 (pg. 51-52 of PB) 29.07.2022 4. The ld. DR could not dispute the aforesaid chronology. 5. It further comes up that in regard to present assessment year the notice u/s 148 was issued on 29.07.2022 i.e. after 3 years have lapsed from the end of relevant assessment year, thus, prior approval from competent authority was needed but the competent authority in the case of assessee should have been Principle Chief Commissioner of Income Tax, whereas approval has Printed from counselvise.com P a g e | 4 ITA No. 4698/Del/2025 CO 286/Del/25 KRSKA Capital Pvt.ltd. (AY: 2017-18) been taken from Principle Commissioner of Income Tax -4, Delhi. This fact also could not be disputed by Ld. DR. 6. In the light of aforesaid we are inclined to sustain the grounds raised in the cross objection and allow the same. As a consequence, the appeal of revenue is dismissed. The impugned reassessment order is quashed. Order pronounced in the open court on 04.02.2026 Sd/- (Manish Agarwal) Sd/- (Anubhav Sharma) ACCOUNTANT MEMBER JUDICIAL MEMBER Dated 04.02.2026 Rohit, Sr. PS Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT ASSISTANT REGISTRAR ITAT NEW DELHI Printed from counselvise.com "