SABKA BUILDWELL PRIVATE LIMITED,DELHI V. ITO, WARD-22(1), DELHI

ITA 5758/DEL/2024

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The case involves Sabka Buildwell Pvt Ltd, the appellant, contesting a notice issued under section 148 of the Income Tax Act, 1961, for the assessment year 2015-16. The notice, although dated March 31, 2021, was actually signed and served on April 9, 2021, post the amendment by the Finance Act, 2021. The appellant argued that the notice was invalid as it did not comply with the amended provisions of the law, which were intended to restrict the issuance of such notices beyond the specified date. The Department's representative supported the lower authorities' decisions, but the Tribunal found in favor of the appellant, citing the Supreme Court's decision in a similar case which mandated the dropping of all notices issued post the deadline for the specified assessment year.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 716778 (ITAT-DELHI)
• Duration Of Justice: 8 month(s) 6 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-08-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: G
• Assessment Year: 2015-2016
• Appeal Filed On: 13-12-2024
• Other Referred Cases: Deepak Steel and Power Ltd. vs. Central Board of Direct Taxes & Ors. Civil Appeal No. 5177/2025, UOI v Rajeev Bansal 2024 SCC OnLine SC 2693(2024)
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: MANISH GUPTA
• Assessee Lawyers: GUNJAN JHA
• Keywords: Reason to believe
• Section: 147; 148

Judgement Text

"Page 1 of 6 IN THE INCOME TAX APPELLATE TRIBUNAL, DELHI ‘G’ BENCH, NEW DELHI BEFORE MS. MADHUMITA ROY, JUDICIAL MEMBER, AND SHRI NAVEEN CHANDRA, ACCOUNTANT MEMBER ITA No. 5758/DEL/2024 [A.Y. 2015-16] Sabka Buildwell Pvt Ltd Vs. The I.T.O 1/5867, Gali No. 1 Ward – 22(1) East Rohtash Nagar New Delhi Shahdara, Delhi PAN – AAOCS 0088 H (Applicant) (Respondent) Assessee By : Shri Gunjan Jha, CA Department By : Shri Manish Gupta, Sr. DR Date of Hearing : 07.08.2025 Date of Pronouncement : 19.08.2025 ORDER PER NAVEEN CHANDRA, A.M:- This appeal by the assessee is preferred against the order of NFAC, Delhi dated 17.10.2024 for A.Y 2015-16. Printed from counselvise.com ITA No. 5758/DEL/2024 [A.Y. 2015-16] Sabka Buildwell Vs. ITO Page 2 of 6 2. The sum and substance of the grievance of the assessee is that the order passed u/s 147 r.w.s 144/144B is bad in law and unwarranted without application of mind and reason to believe that any income chargeable to tax has escaped assessment. 3. At the very outset, the ld. counsel for the assessee submitted that the assessee was issued notice u/s 148 of the Act for the year under consideration on 31.03.2021 under the unamended provisions of the Act, However, the same was actually signed, served and issued on 09.04.2021, i.e., after the amendment vide Finance Act 2021. 4. The ld. counsel for the assessee submitted the copy of the notice issued u/s 148 of the Act and contended that the screenshot of properties of the digital signature affixed on such notice clearly depict the date of signing as 09.04.2021 and the screenshot of the income tax portal showing the date of service of such notice as 09.04.2021 has been submitted. 5. The ld. counsel for the assessee relied upon the judgement of Hon'ble Supreme Court of India in the case of Deepak Steel and Power Ltd. vs. Printed from counselvise.com ITA No. 5758/DEL/2024 [A.Y. 2015-16] Sabka Buildwell Vs. ITO Page 3 of 6 Central Board of Direct Taxes & Ors. Civil Appeal No. 5177/2025 wherein it has been held that all the notices u/s 148 of the Act issued beyond 01.04.2021 for the A.Y. 2015-16 will have to be dropped as they would not fall for completion during the period prescribed under TOLA, 2020, hence the current notice issued and served on 09.04.2021 under the unamended provisions of the Act will have to be quashed in such respect and hence the entire proceedings shall stand vitiated. 6. The assessee thus prays that the notice issued u/s 148 of the Act on 09.04.2021, i.e., after 31.03.2021, under the unamended provisions of the Act be quashed and the entire proceedings in such respect be dropped for the same being bad at law as covered by the aforementioned judgement of Hon'ble Supreme Court of India. 7. Per contra, the ld. DR relied on the orders of the authorities below. 8. We have heard the rival submissions and have perused the relevant material on record. We find that the Hon'ble Supreme Court in the case of Deepak Steel and Power Ltd [supra], referring to para 19(f) of the Printed from counselvise.com ITA No. 5758/DEL/2024 [A.Y. 2015-16] Sabka Buildwell Vs. ITO Page 4 of 6 decision of UOI v Rajeev Bansal 2024 SCC OnLine SC 2693(2024), has held as under: “19. (f) The Revenue concedes that for the assessment year 2015- 2016, all notices issued on or after April 1, 2021 will have to be dropped as they will not fall for completion during the period prescribed under the Taxation and other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020.” 5. As the revenue made a concession in the aforesaid decision that is for the assessment year 2015-2016, all notices issued on or after 1st April, 2021 will have to be dropped as they would not fall for completion during the period prescribed under the taxation and other laws (Relaxation and Amendment of certain Provisions Act, 2020). Nothing further is required to be adjudicated in this matter as the notices so far as the present litigation is concerned is dated 25.6.2021.” 9. The fact of the instant case shows that though the notice u/s 148 is dated 31.03.2021, the notice was issued on 09.04.2021 which is evident from the digital signature affixed to the notice. The notice u/s 148 was actually signed, issued and served on 09.04.2021 i.e., after the amendment vide Finance Act, 2021, which shows that the notice was issued beyond the prescribed time of 31.03.2021. The hon’ble Supreme Court in Deepak Steel and Power Ltd (supra) mandates that all notices issued on or after 01.04.2021 will have to be dropped as they will not be Printed from counselvise.com ITA No. 5758/DEL/2024 [A.Y. 2015-16] Sabka Buildwell Vs. ITO Page 5 of 6 covered under TOLA. In view of the same, we are of the considered opinion that in the facts of the instant case, the assumption of jurisdiction by the AO is invalid and deserves to be quashed. Moreover, this issue is squarely covered in favour of the assessee by the decision of the Hon'ble Apex Court [supra]. Ground 1 is allowed. 10. As the appeal is decided on the issue of assumption of jurisdiction, no adjudication on ground 2, 3 and 4 is being expressed. 11. In the result, the appeal of the assessee in ITA No. 5758/DEL/2024 is allowed. The order is pronounced in the open court on 19.08.2025. Sd/- Sd/- [MADHUMITA ROY] [NAVEEN CHANDRA] JUDICIAL MEMBER ACCOUNTANT MEMBER Dated: 19th AUGUST, 2025. VL/ Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(A) Asst. Registrar, 5. DR ITAT, New Delhi Printed from counselvise.com ITA No. 5758/DEL/2024 [A.Y. 2015-16] Sabka Buildwell Vs. ITO Page 6 of 6 Sl No. PARTICULARS DATES 1. Date of dictation of Tribunal Order . 2. Date on which the typed draft Tribunal Order is placed before the Dictation Member 3. Date on which the typed draft Tribunal Order is placed before the other Member 4. Date on which the approved draft Tribunal Order comes to the Sr. P.S./P.S. 5. Date on which the fair Tribunal Order is placed before the Dictating Member for pronouncement 6. Date on which the signed order comes back to the Sr. P.S./P.S 7. Date on which the final Tribunal Order is uploaded by the Sr. P.S./P.S. on official website 8. Date on which the file goes to the Bench Clerk alongwith Tribunal Order 9. Date of killing off the disposed of files on the judiSIS portal of ITAT by the Bench Clerks 10. Date on which the file goes to the Supervisor (Judicial) 11. The date on which the file goes for xerox 12. The date on which the file goes for endorsement 13. The date on which the file goes to the Superintendent for checking 14. The date on which the file goes to the Assistant Registrar for signature on the Tribunal order 15. Date on which the file goes to the dispatch section 16. Date of Dispatch of the Order Printed from counselvise.com "