Sangeeta Sharma Vs ITO (ITAT Delhi)
Reassessment Quashed for Non-Service of 148 Notice – Entire Proceedings Held Void Ab Initio
The Delhi ITAT allowed the assessee’s appeal and quashed the entire reassessment for AY 2013-14 on the ground that the mandatory notice under Section 148 was never validly served upon the assessee. The Tribunal noted that although the Department claimed to have issued the notice at the assessee’s residential address, no acknowledgement or any evidence of service was produced before the Bench. The Revenue also failed to demonstrate compliance with the mandatory requirements of recording satisfaction and obtaining valid sanction under Section 151.
Holding that service of notice under Section 148 is the very foundation of reassessment proceedings, the Tribunal ruled that in the absence of proof of service, the entire reopening stood vitiated and lacked jurisdiction. Since the initiation itself was invalid, the additions made under Section 69 on account of alleged unexplained investment in purchase of a car were rendered unsustainable and were not examined on merits.
Accordingly, the reassessment and the consequent additions were quashed in full and the assessee’s appeal was allowed.
FULL TEXT OF THE ORDER OF ITAT DELHI
The instant appeal, preferred by the assessee, is directed against the order dated 07.07.2025 [ITBA/APL/S/250/2025-26/1078251494(1)], passed by the Commissioner of Income Tax (Appeals)/JCIT(A)-1, Pune, arising out of the order dated 23.11.2016 passed by the ITO, Ward 2(2)(4), Ghaziabad in proceedings under Section 144 of the Income Tax Act, 1961 (hereinafter referred to as “the Act”), for assessment year 2013-14.
