S. 151 : Reassessment-Sanction for issue of notice-Notice issued after three years from the end of the relevant assessment year-Principal Chief Commissioner-Approval obtained from Principal Commissioner instead of Principal Chief Commissioner-Reassessment notice and consequential order is quashed and set aside. [S. 56(2)(vii)(b), 144B, 147, 148, 151(ii)]
The Assessing Officer framed the assessment under Section 147 read with Section 144B of the Act, making an addition of Rs. 20,42,000 under Section 56(2)(vii)(b). The assessee challenged the order before the CIT(A) on legal grounds and on merits, which was dismissed . On appeal the ITAT held that the approval for issuing notice under Section 148 was required to be obtained from the Principal Chief Commissioner (Pr. CCIT) as per Section 151(ii) since the notice was issued after three years from the end of the relevant assessment year. However, the AO obtained approval from the Principal Commissioner (Pr. CIT-2), which was invalid. The ITAT quashed the reassessment order for lack of valid approval. The Tribunal emphasized that procedural compliance under Section 151(ii) is mandatory, and failure to obtain approval from the appropriate authority renders the reassessment order void. Accordingly, the appeal was allowed, Relied on UOI v. Rajiv Bansal (2024) 167 taxmann.com 70/2024) 340 CTR 865 / 242 DTR 297 / 301 Taxman 238 / 167 /469 ITR 46 (SC), ACIT-19(1) v. Manish Financials, ITA No. 5050 & 5055/Mum/2024, decided on 2/12/2024. (ITA No. 3224/Mum/2024) dt. 27-1-2025 )(AY. 2017 -18)
Ramlal G. Suthar v. ITO (Mum.)(Trib.) www.itatonline.org
[Hon’ble Shri Anikesh Banerjee, JM and Hon’ble Shri Prabhash Shankar, AM]