IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH ‘SMC’, NEW DELHI Before Sh. Satbeer Singh Godara, Judicial Member ITA No. 5393/Del/2025 : Asstt. Year : 2018-19 Rajinder Prashad, Vs Income Tax Officer, BD-4, 2^nd Floor, Pitampura, Ward-47(1), New Delhi-110034 New Delhi-110001 (APPELLANT) (RESPONDENT)

PAN No. AAFPP2498A Assessee by: Sh. Pranshu Singhal, CA &

Sh. Rahul Bhardwaj, Adv.

Revenue by : Sh. Piyush Sinha, Sr. DR Date of Hearing: 29.09.2025 Date of Pronouncement: 29.09.2025

ORDER

Per Satbeer Singh Godara, Judicial Member:

This assessee’s appeal for Assessment Year 2018-19, arises against the CIT(A)/NFAC, Delhi’s DIN & order No. ITBA/NFAC/S/250/2025-26/1078033799(1) dated 30.06.2025, in proceedings u/s 147 of the Income Tax Act, 1961 (in short “the Act”).

2. Heard both the parties at length. Case file perused.

3. It emerges at the outset that there arises the first and foremost issue of validity of section 148 proceedings herein between the parties wherein the learned Assessing Officer had issued his corresponding notice dated 07.04.2022 for assessment year 2018-19 in question i.e. beyond the prescribed period of three years from the end of the relevant assessment year after getting approval of the PCIT-10, Delhi only. This being the clinching factual position, the assessee has quoted hon’ble jurisdictional high court’s decision that in such an instance, the necessary sanction could not be obtained from the PCIT as the facts herein, in light of Communist Party of India (M) Vs. ITO, (2025) 174 taxmann.com 925 (Del.) deciding the very issue against the department as follows:

“2. The petitioner is a national political party and is registered under Section 29A of the Representation of Peoples Act, 1951. The petitioner filed its return of income for the assessment year [AY] 2016-17 on 15.10.2016, declaring a NIL income, after claiming exemption under Section 13A of the Income Tax Act, 1961.

3. The initial notice under Section 148 of the Act for AY 2016-17 was issued on 28.06.2021. The said notice was unsustainable as it was issued in accordance with the statutory regime as existed prior to 31.03.2021. This court in the case of Mon Mohan Kohli v. Assistant Commissioner of Income Tax & Anr.: Neutral Citation No.: 2021:DHC:4181- DB had set aside such notices that were issued after 31.03.2021 without following the procedure as prescribed under Section 148A of the Act. Some of the other High Courts also took a similar view and struck down notices that were issued under Section 148 of the Act after 31.03.2021 but under the unamended provisions relating to the re-

assessment of income that had escaped assessment.

4. The Revenue appealed the decisions rendered by various High Courts to the Supreme Court of India. In Union of India v. Ashish Agarwal: 2022 SCC OnLine SC 543 - which was one of such appeals arising from the decision of the Allahabad High Court - the Supreme Court delivered its decision on 04.05.2022, whereby it concurred with the view that the amended provisions which came into force after 31.03.2021 would be applicable to notices issued thereafter. However, the Supreme Court also issued certain directions in exercise of powers under Article 142 of the Constitution of India. The Court directed that all notices that were issued under Section 148 of the Act after 01.04.2021 till the date of the said decision (04.05.2022), including those that had been set aside by the High Courts, would be construed as show cause notices under Section 148A(b) of the Act. The Assessing Officers were directed to provide the information and material relied upon by the Revenue for issuance of such notices, to the respective assessees within a period of thirty days from the date of the decision so as to enable the respective assessees to respond to the same.

5. In compliance of the directions issued by the Supreme Court in Union of India & Ors. v. Ashish Agarwal (supra), the AO provided the information to the petitioner on 30.05.2022. The issue raised in t