The assessment for AY 2012-13 was quashed due to violation of statutory timelines under the Income Tax Act, affirming that approvals must reflect an independent application of mind rather than a mechanical process.

O R D E R

PER MANISH AGARWAL, AM:

The captioned appeals are filed by Assessee and Revenue against the separate orders, all are dated 28.02.2025 passed by Ld. Commissioner of Income Tax (Appeals)-30, New Delhi [‘Ld. CIT(A)’ in short] u/s 250 of the Income Tax Act , 1961 [‘the Act’] arising out of Assessment Orders, passed for various Assessment Years from 2012-13 to 2022-23 which are tabulated as under:

2. As all the captioned appeals filed by the assessee and revenue are having common issues which are inter-linked, inter-connected and this fact has been admitted by both the parties during the course of hearing before us, therefore, all the appeals filed by the assessee and revenue are taken together and decided by a common order.

3. First, we take Revenue’s appeal in ITA No.4153/Del/2025 for AY 2012-13 No. 4153/Del/2025 (Assessment Year : 2012-13)

4. Brief fact are that assessee company is engaged in the business of furniture manufacturing, interior designing as well as trading of decorative and furniture item. It has filed its return of income u/s 139(1) of the Act on 11.10.2013 declaring total income of Rs.94,07,988/-. The case of the assessee was selected for scrutiny and assessment was completed u/s 143(3) vide order dt. 21.03.2016 assessing total income at INR 1,65,53,200/-. The said order was challenge in appeal where the assessee got the full relief. Thereafter, a search and seizure actiona u/s 132 of the Act was carried out on 09.02.2022 at the business premises of assessee, residences of its directors and business associates. Based upon the physical and digital data found/seized during the search, cases for various assessment years in the case of assessee where from AY 2012-13 to AY 2020-21 were re-opened u/s 147 of the Act and from AY 2021-22 to AY 2022-23 cases were taken up u/s 143(3) of the Act. Accordingly, notice u/s 148 was issued on 20.01.2023, in response which assessee filed its return of income on 21.02.2023 declaring the total income of INR 1,24,91,433/- as against the income assessed at Rs. 88,63,835/- after appeal effect and thus offered additional income of INR 36,27,600/ on account of service charges earned from various clients for facilitating, supervising and overseeing the work outsourced by them to outside vendors/contractors which was inadvertently missed while filing original return of income and due taxes alongwith interest as per law were paid thereon. Thereafter, notice u/s 143(2) of the Act was issued on 22.02.2023 followed by various notices issued u/s 142(1) seeking multiple information/documents from time to time which were duly complied with. Ld. AO after considering the submissions made, passed the reassessment order u/s 147 of the Act dated 31.03.2023 at a total income of Rs. 3,20,56,960/- by making addition of Rs. 1,95,65,527/- to the income declared in the return filed in response to notice u/s 148 by estimating the profits on undisclosed sales.

5. Against the said order, assessee filed an appeal before Ld. CIT(A) who vide order dated 28.02.2025, quashed reassessment order on the ground of limitations.

6. Aggrieved by the order of Ld. CIT(A), revenue is in appeal before the Tribunal by taking following grounds of appeal:-

“1. Whether, the Ld. CTA) her erred on facts and in law is quashing the order passed as 147 r.w.s. 143(3) of the Act for AY 2012-13 by wrongly interpreting the provisions of Section 149 (1)(b) and Section 153C of the Act?

2. Whether o