Royal Compservices Pvt. Ltd. Vs DCIT (ITAT Mumbai)
Summary: The Mumbai ITAT allowed the appeal of Royal Compservices Pvt. Ltd. for AY 2014-15 by holding that the notice issued under section 148 on 30.07.2022 was barred by limitation and consequently quashing the reassessment proceedings. The assessee had filed its return of income on 30.09.2014 declaring a loss of Rs.23,44,528/-. The case was selected for scrutiny and an order under section 143(3) was passed on 16.12.2016 accepting the returned loss. Subsequently, the assessment was reopened and an order under section 147 read with sections 144 and 144B was passed on 26.05.2023 determining total income at Rs.4,50,00,000 by making an addition of the same amount under section 68. The CIT(A) dismissed the assessee’s appeal on 26.09.2025.
There was a delay of 72 days in filing the appeal before the Tribunal. The assessee filed an affidavit explaining that Shri Manoj Mishra, who handled its income-tax matters, could not attend office due to his mother’s illness and that she ultimately expired on 12.01.2026. The death certificate was enclosed with the affidavit. The Department did not oppose condonation. Relying upon Collector, Land Acquisition v Mst. Katiji And Others-167 ITR 471 (SC), the Tribunal condoned the delay. The Tribunal also admitted additional legal grounds concerning limitation, jurisdiction, DIN and section 151A after referring to NTPC Ltd. vs. CIT, 229 ITR 383 (SC) and CIT vs. Pruthvi Brokers and Shareholders PVt. Ltd., 349 ITR 336 (Bom.).
