SAMPARK MANAGEMENT CONSULTANCY LLP,NOIDA V. DCIT,CIRCLE-5(2)(1), NOIDA

ITA 6025/DEL/2024

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The case involves Sampark Management Consultancy LLP, which appealed against the orders of the Commissioner of Income-tax (Appeals), NFAC, Delhi, challenging the reassessment proceedings for the assessment years 2016-17 and 2017-18. The primary contention was the irregularity in the assumption of jurisdiction for reassessment, specifically the approval for issuing notices under section 148 of the Income Tax Act, 1961, was obtained from an incompetent authority. The Tribunal examined the legal provisions under sections 147 to 151 of the Act, particularly focusing on the amendments made by the Finance Act, 2021, which altered the approval process for reassessment notices issued after three years from the end of the relevant assessment year.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 669414 (ITAT-DELHI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-06-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: G
• Assessment Year: 2016-2017
• Other Referred Cases: Union of India vs. Ashish Agarwal, 444 ITR 1 (SC), Union of India vs. Rajeev Bansal, 2024 (10) TMI 264 \\u2013 SUPREME COURT
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: NARPAT SINGH
• Assessee Lawyers: AMIT GOEL; PRANAV YADAV
• Keywords: Reassessment proceedings
• Section: 147; 148; 139

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCHES: G : NEW DELHI BEFORE SHRI ANUBHAV SHARMA, JUDICIAL MEMBER AND SHRI MANISH AGARWAL, ACCOUNTANT MEMBER ITAs No.6025 & 6026/Del/2024 Assessment Years: 2016-17 &2017-18 Sampark Management Consultancy LLP, A-176, Sector-40, Gautam Budha Nagar, Noida – 201301. PAN: ACSFS9969E Vs DCIT, Circle-5(2)(1), Noida. (Appellant) (Respondent) Assessee by : Shri Amit Goel, CA & Shri Pranav Yadav, Advocate Revenue by : Shri Narpat Singh, Sr. DR Date of Hearing : 23.06.2025 Date of Pronouncement : 25.06.2025 ORDER PER ANUBHAV SHARMA, JM: These appeals are preferred by the assessee against the orders dated 06.12.2024 of the Ld. Commissioner of Income-tax (Appeals), NFAC, Delhi (hereinafter referred to as the Ld. First Appellate Authority or ‘the Ld. FAA’, for short) in Appeals No.NFAC/2015-16/10261741 and No.NFAC/2016- 17/10261748 arising out of the appeals before it against the orders dated 22.05.2023 and 30.05.2023 passed u/s 147 r.w.s. 144B of the Income Tax Act, ITAs No.6025 &6026/Del/2024 2 1961 (hereinafter referred as ‘the Act’) by the Assessment Unit, IT Deptt. (hereinafter referred to as the Ld. AO). 2. The return of income u/s 139 of the Act in AY 2016-17 as filed on 29.09.2016 and in AY 2017-18 it was filed on 18.09.2017. Notices u/s 148 of the Act in both the years were issued on 31.06.2021. On hearing both the sides, we find that primarily the dispute raised by the assessee is challenging assumption of jurisdiction on the basis of irregularity in assumption of jurisdiction on the basis of approval from an authority which was not competent to grant approval u/s 151 of the Act. The relevant ground in that regard, the grounds No.2 and 3 for AY 2016-17 which are common to both the years are reproduced below:- “2. On the facts and circumstances of the case and in law, the reassessment proceedings initiated is bad in law, without jurisdiction and contrary to the provisions of law including the specific provisions of section 147 to section 151A of Income Tax Act, 1961 and therefore, the reassessment proceeding initiated along with assessment order passed are liable to be quashed and CIT(A) erred in not holding so. 3. On the facts and circumstances of the case and in law, the ld. CIT(A0 erred in upholding the initiation of reassessment proceedings by wrongly relying upon the decision of Hon’ble Apex Court in the case of Rajeev Bansal v UOI whereas as per this decision of apex court itself, the reassessment proceeding initiated was liable to be quashed.” 3. We find that section 148 of the Act was substituted by the Finance Act, 2021 w.e.f. 01.04.2021. Notice u/s 148 of the Act as per the old provisions of section 148 of the Act applicable till 31.03.2021 should have been issued only ITAs No.6025 &6026/Del/2024 3 upto 31.03.2021. The issue stands settled by the Hon’ble Supreme Court in Union of India vs. Ashish Agarwal, 444 ITR 1 (SC). The assessee company was part of the litigations. The AO has issued notice u/s 148A(b) on 27.05.2022 and on 28.07.2022 order was passed u/s 148A(d) and issued notice u/s 148 of the Act on the same date, i.e., on 28.07.2022 in AY 2016-17 and while in AY 2017-18 on 27.07.2022 order was passed u/s 148A(d) and issued notice u/s 148 of the Act on 28.07.2022 . This notice dated 28.07.2022 u/s 148 of the Act, available at page 14-15 of the paper book for AY 2016-17 and on pages 16-17 for PB for AY 2017-18, and same are shown to be issued after obtaining approval of Principal Commissioner of Income-tax, Noida. This approval is contrary to the provisions of section 151 of the Act as amended/substituted by the Finance Act, 2021 because, as per section 151 of the Act, if more than three years have lapsed from the end of the relevant assessment year, approval of Principal Chief Commissioner of Income-tax or Principal Director General or Chief Commissioner or Director General was required to be obtained. In the present assessment years, notices u/s 148 have been issued on 28.07.2022 after expiry of three years from the end of relevant assessment years. Accordingly, sanction/approval of Principal Chief Commissioner of Income-tax or Principal Director General or Chief Commissioner or Director General was required to be obtained. Reliance in this regard is placed on the decision of the Hon’ble Supreme Court in Union of India vs. Rajeev Bansal, 2024 (10) TMI 264 – SUPREME COURT) and various decisions. Thus, the approval is not ITAs No.6025 &6026/Del/2024 4 sustainable under law. The grounds as raised deserves to be sustained. Consequently, the appeals of the assessee are allowed. Order pronounced in the open court on 25.06.2025. Sd/- Sd/- (MANISH AGARWAL) (ANUBHAV SHARMA) ACCOUNTANT MEMBER JUDICIAL MEMBER Dated: 25th June, 2025. dk Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(A) 5. DR Asstt. Registrar, ITAT, New Delhi "