M/S. KANODIA TECHNOPLAST PVT. LTD.,NEW DELHI V. DCIT, NEW DELHI

CO 54/DEL/2016

AI Insights

The case involves an appeal by the revenue and a cross objection by M/s. Kanodia Technoplast Pvt. Ltd against the order of the Commissioner of Income Tax (Appeals)-V, Delhi. The primary contention was the validity of the reassessment order passed by the Assessing Officer under sections 147 and 143(3) of the Income-tax Act, 1961. The assessee argued that the reopening of the assessment for the Assessment Year 2005-06 was done without proper sanction from the competent authority under Section 151 of the Act. The Tribunal examined the approval process and found that the necessary approval from the CIT was not obtained, leading to the decision to quash the reassessment order.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 34804 (ITAT-DELHI)
• Appeal Type: Cross Objection
• Pronouncement Date: 19-03-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: 2005-2006
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: OM PARKASH
• Assessee Lawyers: RAKESH GUPTA
• Keywords: Reopening of assessment; Competent authority
• Section: 147

Judgement Text

"Page | 1 INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “C”: NEW DELHI BEFORE SHRI M. BALAGANESH, ACCOUNTANT MEMBER AND SHRI ANUBHAV SHARMA, JUDICIAL MEMBER ITA No. 5457/Del/2015 (Assessment Year: 2005-06) DCIT, Circle-14(1), New Delhi Vs. M/s. Kanodia Technoplast Pvt. Ltd, A-54, Wazirpur Industrial Area, New Delhi-110052 (Appellant) (Respondent) PAN: AAACK3668F CO No. 54/Del/2016 (In ITA No. 5457/Del/2015) (Assessment Year: 2005-06) M/s. Kanodia Technoplast Pvt. Ltd, A-54, Wazirpur Industrial Area, New Delhi-110052 Vs. DCIT, Circle-14(1), New Delhi (Appellant) (Respondent) PAN: AAACK3668F Assessee by : Dr. Rakesh Gupta, Adv Shri Saksham Agrawal, CA Revenue by: Shri Om Parkash, Sr. DR Date of Hearing 12/03/2025 Date of pronouncement 19/03/2025 O R D E R ITA No. 5457/Del/2015 CO No. 54/Del/2016 M/s. Kanodia Technoplast Pvt. Ltd Page | 2 PER M. BALAGANESH, A. M.: 1. The appeal in ITA No. 5457/Del/2015 filed by the revenue and CO No. 54/Del/2016 filed by the assessee arises out of the order of the Commissioner of Income Tax (Appeals)-V, Delhi [hereinafter referred to as ‘ld. CIT(A)’, in short] in Appeal No. 0099/2013-14 dated 05.06.2015 against the order of assessment passed u/s 147/143(3) of the Income-tax Act, 1961 (hereinafter referred to as ‘the Act’) dated 30.03.2013 by the Assessing Officer, DCIT, Circle-5(1), New Delhi (hereinafter referred to as ‘ld. AO’). 2. The only issue raised by the assessee in its cross objection is that the reopening of assessment has been made by the ld AO without obtaining proper sanction u/s 151 of the Act from the competent authority. 3. We have heard the rival submissions and perused the material available on record. The ld DR at the time of hearing placed on record the relevant papers received from the ld AO in respect of approval obtained u/s 151 of the Act before the bench. On going through the said proforma together with the reasons recorded, we find that the ld AO had sent the proposal on 29.12.2011 for reopening the case of the assessee for AY 2005-06 and since the same is to be approved by the ld CIT as the reopening is proposed for beyond 4 years from the end of the relevant assessment year, approval from the Commissioner was sought in terms of Section 151 of the Act. But from the approval papers placed on record, we find that the ld CIT-II, New Delhi had not even affixed his signature and not even mentioned the date of granting approval u/s 151 of the Act. This fact is very clear from what is being reproduced below:- ITA No. 5457/Del/2015 CO No. 54/Del/2016 M/s. Kanodia Technoplast Pvt. Ltd Page | 3 ITA No. 5457/Del/2015 CO No. 54/Del/2016 M/s. Kanodia Technoplast Pvt. Ltd Page | 4 ITA No. 5457/Del/2015 CO No. 54/Del/2016 M/s. Kanodia Technoplast Pvt. Ltd Page | 5 ITA No. 5457/Del/2015 CO No. 54/Del/2016 M/s. Kanodia Technoplast Pvt. Ltd Page | 6 4. From the above, it is very clear that the ld CIT had not affixed his signature of granting approval in terms of Section 151 of the Act. Hence, it has to be construed as no approval granted by the ld CIT. Accordingly, assumption of jurisdiction u/s 147 of the Act by the ld AO for AY 2005-06 is flawed. Hence, we have no hesitation to quash the reassessment order framed for AY 2005-06 for invalid assumption of jurisdiction u/s 147 of the Act. Accordingly, grounds raised by the assessee in its cross objection are allowed. 5. Since, the entire reassessment is quashed, the other grounds raised by the revenue on merits of the addition become academic and they are left open. 6. In the result, cross objection of the assessee is allowed and appeal of the revenue is dismissed as infructuous. Order pronounced in the open court on 19/03/2025. -Sd/- -Sd/- (ANUBHAV SHARMA) (M. BALAGANESH) JUDICIAL MEMBER ACCOUNTANT MEMBER Dated: 19/03/2025 A K Keot ITA No. 5457/Del/2015 CO No. 54/Del/2016 M/s. Kanodia Technoplast Pvt. Ltd Page | 7 Copy forwarded to 1. Applicant 2. Respondent 3. CIT 4. CIT (A) 5. DR:ITAT ASSISTANT REGISTRAR ITAT, New Delhi "