IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “SMC”, NEW DELHI BEFORE SHRI MAHAVIR SINGH, VICE PRESIDENT ITA No. 4366/Del/2025 (Asstt. Year : 2017-18)

Shri Malkiat Singh, vs.ITO, Ward 45(1), WZ 46/3B, Krishna Puri, New Delhi Gali No. 1, Tilak Nagar, Delhi – 110 018 (PAN:BSRPS2158H)

(Appellant) (Respondent)

Appellant by : Sh. P.K. Bansal, Adv. & Sh. Tarun Sharma, CA Respondent by : Ms. Harpreet Kaur Hansra, Sr. DR Date of Hearing 09.09.2025 Date of Pronouncement 08.10.2025 ORDER This appeal has been filed by the Assessee against the orderdated

16.06.2025passed by the NFAC, Delhi relating to assessment year 2017-18.

2. The first issue in this appeal of the assessee is as regards to order of NFAC confirming the action of the Assessing Officer in upholding the validity of reassessment proceedings initiated u/s. 147 r.w.s. 148 of the Act, although the reopening is barred by limitation being escaped income was less than Rs. 50 lacs and does not fall under the extended time limitation u/s. 149(1)(b) of the Act. For this, the assessee has raised the following two grounds:-

(i) That the NFAC has erred in law and on facts in upholding the validity of reassessment proceedings initiated under section 148 of the Act without appreciating that the notice under section 148 was issued beyond the limitation prescribed under section 149(1)(a), and hence, is bad in law and void ab intio.

ii) That the Ld. CIT(A) has erred in failing to appreciate that the income alleged to have escaped assessment was less than Rs. 50 lacs, and therefore, the extended time limit under section 149(1)(b) was not applicable to the appellant’s case. The proceedings initiated under section 148 are thus barred by limitation and liable to be quashed.

3. Brief facts of the case are that assessee has not filed ITR u/s. 139(1) of the Act. The assessment was completed by the Assessment Unit at an income of Rs. 35,91,700/- out of which Rs. 35,12,500/- was assessed as short term capital gain. Originally notice under section 148A(b) dated 09.02.2024 was issued stating therein that the income had escaped the assessment as per the provisions of Section 147 of Income Tax Act, 1961 in respect of sale, purchase of properties and contractual receipts as under:-

- Sale of immovable property Rs. 1,02,45,000/-

- Purchase of immovable property Rs. 32,20,000/-

- TDS u/s. 194C Rs. 79,200

4. Against the assessment, assessee preferred the appeal before the Ld. CIT(A)/NFAC, who vide its impugned order dated 16.06.2025 has partly allowed the appeal of the assessee. Further aggrieved, the assessee has filed present appeal before the Tribunal.

5. The ld. AR of the assessee submits that he has raised legal ground that notice under Section 148 of the Act was issued on 09.02.2024, which clearly beyond the period of limitation. In the notice under Section 148, the Assessing officer recorded that income chargeable to tax has escaped assessment and that the order under sub-section (d) of Section 148A of the Act has been passed in case of assessee on 14/03/2024. In response to such notice, the assessee submitted that in this case the income escaped assessment is below Rs. 50.00 lacs, therefore, the notice dated 09.02.2024 was issued for A.Y. 2017-18 whereas the last date for issuing the notice under section 148A(b) was upto 31.03.2021 as the income escaped assessment for the said year was much below Rs. 50,00,000/-. It was further submitted that during proceedings under section 148A(b) it was submitted that department is not correct as the assessee had not purchased any property during the year under consideration which is alleged to have been purchased for Rs. 32,20,000/-. Further, in the said reply, an objection was raised that the income which can be considered as escaped assessment is less than Rs. 50 lacs so case of the assessee is covered by the Provision of Clause of Sub Section 1 of Section 149 of Income Tax Act, 1961. It was further submitted that assesse had sold the properties during the year under con