JITESHKUMAR MADHAVBHAI JAGANI,SURAT V. DY. CIT, CIRCLE-2(1)(1), SURAT

ITA 20/SRT/2026

AI Insights

The case involves an appeal by Jiteshkumar Madhavbhai Jagani against the order passed by the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi. The appeal was centered on the validity of a notice issued under section 148 of the Income-tax Act, 1961, by the Assessing Officer, which was challenged on the grounds that the alleged escapement of income was less than Rs. 50 lakhs. The tribunal, after considering the arguments and the provisions of the law, concluded that the notice was issued without proper jurisdiction as per section 149(1)(b) of the Act, leading to the quashing of the notice and all related proceedings.

• Counselvise Citation: [2026] 140 COUNSELVISE.COM (IT) 831355 (ITAT-SURAT)
• Duration Of Justice: 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-01-2026
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: misc
• Appeal Filed On: 10-01-2026
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: AJAY E UKE
• Assessee Lawyers: RASESH SHAH
• Section: 148

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL SURAT BENCH, SURAT BEFORE DR. B.R.R. KUMAR, VICE-PRESIDENT MS. SUCHITRA KAMBLE, JUDICIAL MEMBER I.T.A. No. 20/SRT/2026 (Assessment Year: 2016-17) Jiteshkumar Madhavbhai Jagani, C-606, The Laurels, Opp. Capital Green, Bharthana, Vesu, Surat-395007 [PAN : ADVPJ 2044 H] Vs. Deputy Commissioner of Income-tax, Circle-2(1)(1), Surat (Appellant) .. (Respondent) Appellant by : Shri Rasesh Shah, AR Respondent by: Shri Ajay E Uke, Sr DR Date of Hearing 19.01.2026 Date of Pronouncement 19.01.2026 O R D E R PER DR. B.R.R. KUMAR, VICE-PRESIDENT:- This appeal has been filed by the assessee against the order dated 20.11.2025 passed by the Ld. Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi (‘Ld. CIT (A)’ in short), under Section 250 of the Income-tax Act, 1961 (‘the Act’ in short) for Assessment Year 2016-17. 2. At the outset itself, the AR for the assessee challenged the jurisdiction assumed by the Assessing Officer by issuing notice u/s 148 of the Act. It was submitted that the alleged escapement of income was less than Rs.50 lakhs, and therefore the notice issued u/s 148 was invalid and void ab initio in view of the provisions of section 149 of the Act. The Ld. DR could not controvert the submissions made by the Ld.AR. 3. We have heard the rival contentions and perused the material available on record. We find that the notice u/s 148 of the Act was issued beyond three years Printed from counselvise.com ITA No. 20/SRT/2026 Jiteshkumar Madhavbhai Jagani Vs. DCIT Asst. Year : 2016-17 - 2– from the end of the relevant assessment year and, therefore, as per section 149(1)(b) of the Act, reopening could be done only if the Assessing Officer possessed material evidence showing escapement of income represented in the form of asset amounting to Rs.50 lakhs or more. Since the escapement in the present case admittedly did not exceed Rs.50 lakhs, the assumption of jurisdiction itself was bad in law. 4. In view of the above undisputed facts, the jurisdictional condition prescribed under section 149(1)(b) of the Act is not satisfied. Consequently, the notice issued under section 148 and all proceedings emanating therefrom are without authority of law and liable to be quashed. 5. In the result, the appeal of the assessee is allowed. Heard, dictated and pronounced in the open Court today on 19.01.2026 Sd/- Sd/- (SUCHITRA KAMBLE) (DR. B.R.R. KUMAR) JUDICIAL MEMBER VICE-PRESIDENT Surat; Dated 19/01/2026 btk आदेश की Ůितिलिप अŤेिषत/Copy of the Order forwarded to : 1. अपीलाथŎ / The Appellant 2. ŮȑथŎ / The Respondent. 3. संबंिधत आयकर आयुƅ / Concerned CIT 4. आयकर आयुƅ ) अपील ( / The CIT(A)- 5. िवभागीय Ůितिनिध , अिधकरण अपीलीय आयकर , /DR,ITAT, Surat, 6. गाडŊ फाईल / Guard file. आदेशानुसार/ BY ORDER, TRUE COPY सहायक पंजीकार (Asstt. Registrar) आयकर अपीलीय अिधकरण ITAT, Surat Printed from counselvise.com "