ITAT Delhi Quashes Assessment for Invalid Section 148 Notice Issued by Non-Jurisdictional ITO

Harpal Singh Vs ITO (ITAT Delhi)

Summary: The Delhi Bench of the Income Tax Appellate Tribunal considered the assessee’s challenge to the validity of reassessment proceedings for A.Y. 2016-17 arising from the order of the Commissioner of Income Tax (Appeals)/National Faceless Appeal Centre dated 08.07.2025. The assessee principally pressed Ground Nos. 2.1 to 2.3, challenging the validity of the notice under section 148 on the grounds that valid reasons had not been recorded, the reasons were vague and lacked application of mind and tangible material, and valid sanction under section 151 was absent. Before examining the substantive jurisdictional issue, the Tribunal considered a 48-day delay in filing the appeal. After considering the assessee’s condonation application and the submissions of both sides, it found sufficient cause, condoned the delay and admitted the appeal for adjudication.

The Tribunal then addressed the solitary issue concerning the jurisdiction of the ITO, Ward-1, Sonipat in relation to the assessment framed on 30.03.2022. The assessee relied upon CBDT Instruction No. 1/2011 dated 31.01.2011, issued under section 119, concerning the pecuniary limits for assigning cases to Income Tax Officers and Assistant/Deputy Commissioners. The instruction prescribed, for non-corporate returns in mofussil areas, jurisdiction with ITOs up to Rs.15 lakhs and with ACs/DCs above Rs.15 lakhs, while the corresponding limits for metro cities were up to Rs.20 lakhs for ITOs and above Rs.20 lakhs for DCs/ACs. The assessee submitted that notwithstanding this framework, the ITO, Ward-1, Sonipat had issued the notice under section 148 dated 30.03.2021. The Tribunal recorded that the Revenue failed to rebut this factual position.