Pradeep Kumar Agarwalla Vs DCIT (ITAT Delhi)
The cross appeals before the ITAT Delhi arose from the order dated 24.07.2025 of the CIT(A)-29, New Delhi concerning Assessment Year 2021-22. The assessee had filed his return declaring total income of Rs.1,19,74,370/- and was subsequently covered by a search under section 132 of the Income-tax Act, 1961 conducted on the Galaxy Group on 17.11.2021. The assessment was completed under section 143(3) on 11.02.2023, pursuant to compulsory scrutiny selection, and additions of Rs.5,43,30,338/-, Rs.3,42,54,938/- and Rs.50,00,000/- were made. The CIT(A) confirmed the first addition while deleting the latter two additions.
In the assessee’s appeal, the principal challenge concerned the validity of the assessment itself. The assessee contended that, following the search, the Assessing Officer was required to proceed under the reassessment provisions contained in sections 147 and 148, including the statutory requirements concerning approval, rather than completing the assessment under section 143(3). The assessee relied upon the decision of the coordinate Bench in Montage Enterprises Pvt. Ltd. Vs. DCIT/ACIT in ITA No.5458/Del/2025.
The Tribunal examined the assessment record and noted that the assessee’s return had been selected for compulsory scrutiny pursuant to the CBDT notification dated 03.06.2022, while a search under section 132 had been conducted on 17.11.2021. It then considered the reasoning adopted by the coordinate Bench in Montage Enterprises, which had relied upon Homelife Buildcon Private Limited Vs DCIT (ITAT Chandigarh) and the decision in Jamna Das Nikkamal Jain Saraf Pvt. Ltd. Vs DCIT.
