SHRI RADHA KRISHAN MANDIR TRUST,DELHI V. INCOME TAX OFFICER, WARD EXEMP 2(2), DELHI

ITA 1481/DEL/2025

AI Insights

The case involves Shri Radha Krishan Mandir Trust appealing against the order of the Commissioner of Income Tax (Appeals/National Faceless Appeal Centre) which had dismissed their earlier appeal against an assessment order. The assessment had been made under section 144 of the Income Tax Act, 1961, with an addition of Rs. 51,80,801 under section 69A. The primary contention of the Trust was the non-issuance of a notice under section 143(2) during the assessment process, which they argued was a mandatory requirement that was violated. The Department argued that the notice was not required as the return was filed belatedly. The Tribunal, referencing several judicial precedents, found in favor of the Trust, emphasizing the necessity of the notice under section 143(2) even in cases of belated returns.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 792432 (ITAT-DELHI)
• Duration Of Justice: 8 month(s) 24 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-12-2025
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: E
• Assessment Year: 2017-2018
• Appeal Filed On: 11-03-2025
• Other Referred Cases: Pr. CIT vs Dart Infrabuild (P) Ltd, ITO Vs. Artistic Finance Pvt. Ltd, Reena Mittal vs. DCIT, PCIT vs. Shri Jai Shiv Shankar Traders (P.) Ltd., CIT vs. Delhi Kalyan Samiti, Shaily Juneja vs. ACIT, Primary Real Estate Investments vs. Dy. CIT
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: SHANKAR LAL VERMA
• Assessee Lawyers: SURESH KUMAR GUPTA
• Keywords: Set aside; Reassessment proceedings
• Section: 148; 144

Judgement Text

" 1 ITA No. 1481/Del/2025 Shri Radha Krishan Mandir Trust Vs. ITO IN THE INCOME TAX APPELLATE TRIBUNAL DELHI (DELHI BENCH ‘E’ NEW DELHI) BEFORE SHRI S. RIFAUR RAHMAN, ACCOUNTANT MEMBER AND SHRI YOGESH KUMAR U.S., JUDICIAL MEMBER ITA No. 1481/DEL/2025 (A.Y. 2017-18) Shri Radha Krishan Mandir Trust, Opposite E Block, Greater Kailsah, Part-1, Delhi PAN: AAKTS7362K Vs. Income Tax Officer, Ward Exemption 2(2) Civic Centre, Delhi Appellant Respondent Assessee by Sh. Suresh Kumar Gupta, CA Revenue by Sh. Shankar Lal Verma, Sr. DR Date of Hearing 09/09/2025 Date of Pronouncement 05/12/2025 ORDER PER YOGESH KUMAR, U.S. JM: The present appeal is filed by the Assessee against the order of Ld. Commissioner of Income Tax (Appeals/National Faceless Appeal Centre (‘Ld. CIT(A)/NFAC’ for short), New Delhi dated 18/12/2024 for the Assessment Year 2017-18. 2. Brief facts of the case are that,an assessment order came to be passed on 26/12/2019 u/s 144 of the Income Tax Act, 1961 ('Act' for short) by making addition of Rs. 51,80,801/- u/s 69A of the Act. Aggrieved by the assessment order dated 26/12/2019, the Assessee preferred an appeal before the Ld. CIT(A). The Ld. CIT(A) vide order dated 18/12/2024, dismissed the Appeal of the Assessee. As against the order of the Ld. CIT(A) dated 18/12/2024, the Assessee preferred the present Appeal. Printed from counselvise.com 2 ITA No. 1481/Del/2025 Shri Radha Krishan Mandir Trust Vs. ITO 3. The Ld. Counsel for the Assessee submitted that the assessment has been completed without issuing notice u/s 143(2) of the Act, which is blatant violation of mandatory requirement of law. The Ld. Assessee's Representative relied on the various judicial pronouncements and sought for setting aside the assessment order. 4. Per contra, the Ld. Department's Representative submitted that the Assessee filed belated return, therefore, the A.O. need not issue the notice u/s 143(2) of the Act, further submitted hat the addition has been made on the merits in order to recover the actual tax due from the Assessee, therefore, submitted that the Grounds of Appeal of the Assessee are devoid of merit, thus, sought for dismissal of the Appeal of the Assessee. 5. We have heard both the parties and perused the material available on record. The Assessing Officer at Para 4 of the assessment order mentioned that the Assessee has failed to furnish return of income for the year under consideration and proceeded to complete the assessment of ‘best Judgment assessment’. The Assessee filed return of income on 30.04.2022 against the notice u/s 148 of the Act dated 29.03.2022 which was beyond 30 days period, the said return was treated as not a valid return and without issuing notice u/s 143(2) of the Act, A.O. completed the income of the Assessee u/s 144 of the Act. The above Printed from counselvise.com 3 ITA No. 1481/Del/2025 Shri Radha Krishan Mandir Trust Vs. ITO action of assessing officer treating the belated filling of return as invalid return is contrary to provisions of the Act as the above return appears to be a valid return in e-filling portal. Even otherwise, the return of income filed in response to notice u/s 148 of the Act cannot be declared to be invalid if the same is filed belatedly although the delay was just of 2 days from date of issue of notice u/s 148 of the Act but there was no delay if date of receipt of the notice is considered. 6. The Hon'ble Delhi High Court in the case of Pr. CIT vs Dart Infrabuild (P) Ltd 118 CCH 0174 (Del), held that issue of notice u/s. 143(2) is mandatory even if the return of income is filed belatedly in response to notice u/s. 148 of the Act and not issuing the notice u/s 143(2) is not a curable defect u/s. 292BB of the Act. 7. Further, by following the above Judgment, the Tribunal has decided the issue in favour of the Assessee in the case of ITO Vs. Artistic Finance Pvt. Ltd ITA No 2781/Del/ 2023 dated 05.05.2025 and Reena Mittal vs. DCIT ITA No.2021/Del/2023 dated 04.06.2025 where the order u/s 144 of the Act was quashed in the absence of service of notice u/s 143(2) of the Act even in case of a belated return of income. Similar view was taken by the Hon'ble Jurisdictional Delhi High Court in the case of PCIT vs. Shri Jai Shiv Shankar Traders (P.) Ltd. 383 ITR 448 (Delhi), CIT vs. Delhi Kalyan Samiti ITA No.696/2015 (Del), Shaily Juneja Printed from counselvise.com 4 ITA No. 1481/Del/2025 Shri Radha Krishan Mandir Trust Vs. ITO vs. ACIT W.P.(C) No.10298/2022 and Primary Real Estate Investments vs. Dy. CIT W.P.(C) No.9705/2023 both dated 27.08.2024 while quashing the reassessment proceedings for not issuing notice u/s 143(2) of IT Act. 8. Considering the above facts and circumstances, as the assessment has been completed without issue of notice u/s 143(2) of the Act despite a valid return available on record, the assessment order becomes invalid in law. Accordingly, we set aside the assessment order and the impugned order of the Ld. CIT(A). 9. Since, we have set aside the assessment order on technical ground, other grounds of Appeal on merits, requires no adjudication. 10. In the result, Appeal of the Assessee is partly allowed. Order pronounced in the open court on 05th December, 2025 Sd/- Sd/- (S. RIFAUR RAHMAN) (YOGESH KUMAR U.S.) ACCOUNTANT MEMBER JUDICIAL MEMBER Date:- 05.12.2025 R.N, Sr.P.S* Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT ASSISTANT REGISTRAR ITAT, NEW DELHI Printed from counselvise.com 5 ITA No. 1481/Del/2025 Shri Radha Krishan Mandir Trust Vs. ITO Printed from counselvise.com "