Allowing the petition the Court held that where PCIT granted sanction u/s 151 mechanically on basis of form mentioning escapement of Rs. 4 lakhs under s.149(1)(b), though law required approval only by Principal Chief Commissioner and escapement above Rs. 50 lakhs, reopening was invalid. Since notice u/s 148A(b) was within three years, case fell under s.149(1)(a). Order and reopening notice were set aside. (AY 2019-20)
Bhavesh Maganlal Dharod v. ITO [2023] 155 taxmann.com 335 (Bom)(HC)
S. 151 : Reassessment-Sanction for issue of notice-Mechanical approval-Principal Commissioner-Amount less than 50 lakhs-Reassessment notice was quashed. [S. 149(1)(b), 148A(b), 148A(d), Art. 226]