Space Kraft Infrastructure Private Limited Vs ITO (ITAT Delhi)
The assessee appealed against the order dated 30.08.2025 of the Commissioner of Income Tax (Appeals)-30, New Delhi, which had upheld a reassessment order passed under Section 147 for Assessment Year 2020-21. The assessee had originally filed its return on 09.02.2021 declaring nil income and book profit of Rs. 5,997 under MAT. Reassessment proceedings were initiated based on information obtained during a search conducted on 17.11.2021 in the Galaxy Group and certain entry operators, indicating that the assessee had allegedly received an accommodation entry of Rs. 11,00,000. A notice under Section 148 was issued on 22.03.2024 after obtaining approval under Sections 148/151.
The assessee challenged the reassessment on legal grounds, contending that the approval under Section 151 was invalid because it was not signed by the competent authority, namely the Principal Commissioner of Income Tax, Delhi-7, as indicated on the approval document. The assessee argued that the absence of a proper signature vitiated the entire reassessment process. This objection had also been raised before the CIT(A), along with reliance on several judicial precedents, but was rejected.
Before the Tribunal, the assessee reiterated this argument and referred to multiple judgments, including a decision of the ITAT Mumbai in J Kumar Infraprojects Ltd. v. DCIT, where similar circumstances led to quashing of reassessment proceedings. The Tribunal examined the approval and found that it was indeed not signed by the concerned authority. The Departmental Representative could not dispute this fact or counter the authorities cited by the assessee.
