MORAL ALLOYS PRIVATE LIMITED,DELHI V. ITO WARD 17(3), DELHI

ITA 870/DEL/2024

AI Insights

The case involves Moral Alloys Pvt. Ltd., which appealed against the order of the CIT(A)/NFAC, Delhi, concerning the reopening of their assessment for the Assessment Year 2012-13 under sections 143(3) read with section 147 of the Income Tax Act, 1961. The primary legal issue was the validity of the reopening of the assessment, which was challenged due to the lack of a valid approval by the prescribed authority as required under section 151 of the Act. The tribunal heard extensive arguments from both parties and examined the case file before concluding that the reopening was not valid due to a mechanical approval process.

• Counselvise Citation: [2026] 140 COUNSELVISE.COM (IT) 831348 (ITAT-DELHI)
• Duration Of Justice: 1 year(s) 10 month(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-01-2026
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: E
• Assessment Year: misc
• Appeal Filed On: 24-02-2024
• Other Referred Cases: Collector Land Acquisition vs. Mst. Katiji & Ors (1987) 167 ITR 471 (SC), CIT vs. S. Goyanka Lime and Chemical Ltd. (2023) 453 ITR 242 (SC)
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: AMISH S. GUPT
• Assessee Lawyers: DEEPANSHU SINGLA; ANKIT GARG
• Section: 143(3)

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH ‘E’, NEW DELHI Before Sh. Satbeer Singh Godara, Judicial Member & Sh. Amitabh Shukla, Accountant Member ITA No. 870/Del/2024 : Asstt. Year : 2012-13 Moral Alloys Pvt. Ltd., 201/1, Ground Floor, Khasra No. 1595/624, Vill. Chandra Wali, Shahdara, Bhola Nath Nagar, New Delhi-110032 Vs Income Tax Officer, Ward-17(3), New Delhi (APPELLANT) (RESPONDENT) PAN No. AAGCM8421J Assessee by : Sh. Deepanshu Singla, Adv. & Sh. Ankit Garg, Adv. Revenue by : Ms. Amish S. Gupt, CIT-DR Date of Hearing: 20.01.2026 Date of Pronouncement: 20.01.2026 ORDER Per Satbeer Singh Godara, Judicial Member: This assessee’s appeal for Assessment Year 2012-13, arises against the CIT(A)/NFAC, Delhi’s DIN & order No. ITBA/NFAC/S/250/2023–24/1056617353(1) dated 27.09.2023, in proceedings u/s 143(3) r.w.s. 147 of the Income Tax Act, 1961 (in short “the Act”). 2. Heard both the parties at length. Case file perused. 3. Delay of 84 days in filing of the instant appeal is condoned in the larger interest of justice in light of Collector Land Acquisition vs. Mst. Katiji & Ors (1987) 167 ITR 471 (SC). Printed from counselvise.com ITA No. 840/Del/2024 Moral Alloys Pvt. Ltd. 2 4. It emerges during the course of hearing that there arises the first and foremost issue of validity of the reopening itself for want of a valid approval by the learned prescribed authority u/s. 151 of the Act. The tribunal’s attention is invited to the approval dated 30.03.2019 (page 20 in paper book) wherein the learned prescribed authority had accepted the Assessing Officer’s reopening proposal as “I am satisfied………”. This being the clinching factual position emanating from the record, we hereby quote CIT vs. S. Goyanka Lime and Chemical Ltd. (2023) 453 ITR 242 (SC) that such a mechanical approval vitiates the entire reopening; and therefore, we accept the instant legal ground in very terms. This reopening is quashed therefore. 5. All other pleadings on merits stand rendered academic. 6. This assessee’s appeal is allowed. Order Pronounced in the Open Court on 20/01/2026. Sd/- Sd/- (Amitabh Shukla) (Satbeer Singh Godara) Accountant Member Judicial Member Dated: 20/01/2026 *Subodh Kumar, Sr. PS* Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT ASSISTANT REGISTRAR Printed from counselvise.com "