The assessee, a non-resident Indian, filed an e-return of income for AY 2017-18 on 02.07.2017, declaring income at Rs. 80. Subsequently, it was found that out of Rs. 16,00,000\/- cash seized by the police in old denomination notes (Rs 500 and 1000), Rs. 7,35,000\/- belonged to the assessee. The AO reopened the case under Section 147 and issued a Section 148 notice on 29.07.2022, after obtaining prior approval from the Principal Commissioner of Income Tax (PCIT-27), Mumbai. \u00a0The assessee raised additional ground before the Tribunal on the issue of incorrect sanction by the specified Authority . The Tribunal admitted the additional ground . The assessee contended that \u00a0since more than three years had elapsed from the end of the relevant assessment year, approval should have been obtained from the Principal Chief Commissioner or Principal Director General as mandated under Section 151(ii) of the new regime and contested the validity of the notice, arguing that the approval from an unauthorized authority rendered the reassessment proceedings invalid. The ITAT held\u00a0 that the issuance of notice without approval from the correct authority is a jurisdictional defect that invalidates the entire assessment. \u00a0Tribunal referred the \u00a0UOI .v. \u00a0Rajeev Bansal \u00a0(2024) 340 CTR 865 \/ \u00a0242 DTR\u00a0 297 \/ 301 Taxman\u00a0 238 \/ 167 \/469 ITR 46 \u00a0(SC) \u00a0\u00a0UOI v . Ashsih Agarwal (2022) 286 Taxman 183\/ 444 ITR 1 \u00a0( SC) he prior approval under section 148A(a) and 148(b) \u00a0wherein the prior approval under section 148A(a) and 148(b) were waived, however, the prior approval of the specified authority \u00a0according to section 151 of the new regime was not waived before passing an order u\/s. 148A(d) or issuing a notices u\/s. 148 of the Act on or after 01.04.2021 . Accordingly the \u00a0Tribunal quashed the Section 148 notice and the consequential reassessment order, rendering other issues academic. (ITA No. 2427\/MUM\/2024, dt. 10\/02\/2025) \u00a0(AY. 2017-18)<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 151 : Reassessment – Sanction for issue of notice \u2013Additional ground admitted – Approval from incorrect authority \u2013 Notice issued without valid sanction from specified authority \u2013 Notice is quashed and set aside. [S. 144C(13) , 147,148, 148A(b), 148A(d), 151(ii), Art. 226]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-51563","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-dpF","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/51563","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=51563"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/51563\/revisions"}],"predecessor-version":[{"id":51564,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/51563\/revisions\/51564"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=51563"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=51563"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=51563"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}