Vikas Jhuntra And Sons HUF Vs ACIT (ITAT Delhi)
The Income Tax Appellate Tribunal (ITAT), Delhi, adjudicated an appeal filed by the assessee against the order dated 16.12.2025 passed by the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, for Assessment Year 2019–20.
The assessee, a Hindu Undivided Family (HUF), had filed its return of income on 21.06.2019 declaring total income of ₹7,34,500. During the relevant year, the assessee made a donation of ₹2,00,000 to a political party and claimed deduction under Section 80GGC of the Income Tax Act, 1961. Subsequently, the case was reopened, and a notice under Section 148A(b) was issued on 29.03.2023 on the ground that the donation was allegedly bogus. The assessee filed a reply, but the objections were rejected, and a notice under Section 148 was issued on 10.04.2023 by the Assistant Commissioner of Income Tax (ACIT), Circle 49(1), Delhi.
The assessee challenged the validity of the reassessment proceedings, contending that the notice under Section 148 was issued without jurisdiction. It was argued that as per CBDT Instruction No. 1/2011 dated 31.01.2011, in metro cities, cases of non-corporate assessees with declared income up to ₹20,00,000 are to be handled by the Income Tax Officer (ITO), and not by the ACIT. Since the assessee’s declared income was ₹7,34,500, which was below the prescribed monetary limit, the ACIT lacked jurisdiction to issue the notice.
