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IN THE INCOME TAX APPELLATE TRIBUNAL

DELHI BENCH ‘SMC’, NEW DELHI

Before Sh. Satbeer Singh Godara, Judicial Member

ITA No. 6691/Del/2025 : Asstt. Year: 2018-19

ASB Designs LLP, Vs DCIT,

B-223, Naraina Industrial Area, Central Circle-26,

New Delhi-110028 New Delhi-110001

(APPELLANT) (RESPONDENT)

PAN No. ABDFA1476G

Assessee by: Sh. Sandeep Vijh, AR

Revenue by : Sh. Amit Shukla, Sr. DR

Date of Hearing: 23.12.2025 Date of Pronouncement: 23.12.2025

ORDER

This assessee’s appeal for Assessment Year 2018-19

arises against the CIT(A)-29, New Delhi’s order dated

22.08.2025, in case No. CIT(A), Delhi-29/10559/2017-18, 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 21.03.2022 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, Delhi-10

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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 un-amended 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

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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 the notice pertained to an

amount of Rs.1,