IN THE INCOME TAX APPELLATE TRIBUNAL DELHI DELHI BENCH ‘B’ NEW DELHI BEFORE SHRI YOGESH KUMAR U.S., JUDICIAL MEMBER AND SHRI NAVEEN CHANDRA, ACCOUNTANT MEMBER ITA No. 2505/DEL/2025 (A.Y. 2016-17) ITA No. 2506/DEL/2025 (A.Y. 2017-18)

Dharambir Vs Income Tax Officer, RZF 762/22, Gali No. 4, Raj Ward-44 (1)

Nagar-II, Palam Colony, Block E-2, Dr. S. P. M. Civic Palam, New Delhi Centre, MintoRaod, PAN: BAYPD3964P New Delhi Appellant Respondent Assessee by Sh. Bhupinderjit Kumar, Shri Nikhil Sharma, Adv and Ms.Kirti Singh, Adv Revenue by Shri Rajesh Kumar Dhanesta, Sr. DR Date of Hearing 25/09/2025 Date of Pronouncement 26/09/2025 ORDER PER YOGESH KUMAR, U.S. JM:

The captioned appeals are filed by the Assessee against the orders of Ld. Commissioner of Income Tax (Appeals/ National Faceless Appeal Centre (‘Ld. CIT(A)/NFAC’ for short), New Delhi dated 17/02/2025 and 21/02/2025 pertaining to the Assessment Years2016-17 and 2017-18 respectively. As similar issues are involved in the captioned Appeals both the Appeals are heard together.

2. Brief facts of the case are that, the Assessee is a non-filer for the years under consideration. During the assessment proceedings for Assessment Year 2016-17, the A.O. had reasons to believe that the Assessee has unexplained money of Rs. 46,40,000/- and for Assessment Year 2017-18, the A.O. had reasons to believe that the Assessee had Short Term Capital Gain of Rs. 1,40,47,500/- .Subsequently, a notice u/s 148 of the Act was issued on 05/07/2022 (for Assessment Year 2016-17) and 21/07/2022 (for Assessment Year 2017-18). Assessment order came to be passed on 13/05/2023 u/s 147 r.w. Section 147B of the Act for Assessment Year 2016-17 by assessing the total income of the Assessee at Rs. 46,40,000/- and for Assessment Year 2017-18, A.O. passed the assessment order on 25/03/2023 u/s 147 r.w. Section 147B of the Act by computing the total income of the Assessee at Rs.

1,40,47,500/-.

3. Aggrieved by the assessment orders dated 13/05/2023 and 25/03/2023 for Assessment Years 2016-17 and 2017-18 respectively, Assessee preferred the Appeals before the Ld. CIT(A). The Ld. CIT(A) vide orders dated 17/02/2025 and 21/02/2025 for Assessment Years 2016-17 & 2017-18, dismissed the Appeals of the Assessee. As against the orders of the Ld. CIT(A), the Assessee preferred the above Appeals.

4. The Ld. Counsel for the Assessee vehemently submitted that the notices u/s 148 of the Act dated 15/07/2022 and 21/07/2022 have been issued after three years form the end of relevant Assessment Years, therefore, approval of Pr. Chief Commissioner/Pr. Director General/Chief Commissioner/Director General under Section 151(ii) of the Act (Finance Act, 2021) was mandatory. However, in both the Assessment Years the approval has been obtained from PCIT, therefore, relying on the Judgment of Hon'ble High Court of Delhi in the case of Rajesh Gupta (HUF) Vs. ACIT in Writ Petition (C) No.

6057/2023, sought for quashing the assessment orders.

5. Per contra, the Ld. Department's Representative relying on the orders of the Lower Authorities, submitted that the approvals have been obtained from the competent/specified authority and the assessment proceedings have been initiated strictly in accordance with law, therefore, sought for rejecting the contention of the Ld. Assessee's Representative.

6. We have heard both the parties and perused the material available on record. The assessment years under consideration are2016-17 and 2017-18. As per Section 151 (ii) of the Act as applicable in the relevant point of time, any notice issued u/s 148 of the Act after lapse of three years from the end of relevant Assessment Years, it is incumbent upon the A.O. to obtain prior approval of Pr. Chief Commissioner/Pr. Director General/Chief Commissioner/Director General under Section 151(ii) of the Act (as amended in Finance Act, 2021). However, in the present case, the approval has been accorded by Principal Commissioner of Income Tax, which is evident from the notices