Mubarak Overseas Private Limited Vs CIT(A) (ITAT Delhi)
31st March Notice, 1st April Delivery – Delhi ITAT Quashes Reassessment for Crossing Into New 148A Regime
The Delhi ITAT in Mubarak Overseas Pvt. Ltd. quashed the reassessment proceedings holding that though the notice u/s 148 was digitally signed on 31.03.2021, it was actually dispatched and delivered on 01.04.2021, by which time the new reassessment regime under Sections 148A/149 had already come into force.
The assessee produced RTI information and ITBA portal screenshots showing that the notice, though dated 31.03.2021, was served only on 01.04.2021 at 7:17 AM. Relying on the Delhi ITAT ruling in SVR Creation Pvt. Ltd. and the Delhi High Court judgment in Suman Jeet Agarwal, the Tribunal held that such notices fall under “Category C” cases and must be treated only as a deemed show-cause notice u/s 148A(b).
Since the AO proceeded directly with reassessment without following the mandatory procedure prescribed under Section 148A, the Tribunal held that the very assumption of jurisdiction was invalid. Consequently, the reassessment order was declared null and void, and the Revenue’s appeal became infructuous.
FULL TEXT OF THE ORDER OF ITAT DELHI
These cross appeals preferred by the assessee and the revenue against the orders of the Ld. National Faceless Appeal Centre (NFAC), Delhi (hereinafter referred to as the First Appellate Authority or ‘the ld. FAA’ for short) in appeals filed before him against the orders of the ld. Assessing Officer (hereinafter referred to as the Ld. AO, for short) passed u/s 143(3)/144/147 of the Income-tax Act, 1961 (hereafter referred to as ‘the Act’). Further details of the orders of the lower authorities are as under : –
| ITA No. & AY | Ld. FAA who passed the appellate order | Appeal No. & Date of order of the Ld. FAA | AO who passed the assessment order & Date of order |
|---|---|---|---|
| 6393/Del/25 2014-15 | NFAC, Delhi | DIN & Order No : ITBA/NFAC/S/250/2025- 26/1076520885(1) Dated 28.05.2025 | NFAC, Dated; 27.03.2022 |
| 4651/D/25 2014-15 | NFAC, Delhi | DIN & Order No : ITBA/NFAC/S/250/2025- 26/1076520885(1) Dated 28.05.2026 | NFAC, Dated; 27.03.2022 |
2. On hearing both sides we find that assessee has raised additional ground which is reproduced below:
“ADDITIONAL GROUND No. 1:-
“That the proceedings U/s 147 / 148 are without jurisdiction and bad in law.”
ADDITIONAL GROUND No. 2:-
“That under the facts and circumstances of the case, the proceedings are without jurisdiction as no notice U/s. 148A has been issued in terms of Hon’ble Supreme Court case in case of Ashish Agarwal.”
3. As the additional ground is pure question of law which can be decided on the basis of admitted facts the same is admitted for hearing.
