Reassessment notice under section 148 upheld where Additional Commissioner could validly grant sanction and limitation was not a writ ground.

Section 148 reassessment notice was examined on whether sanction under section 151(2) was validly granted by an Additional Commissioner after the Finance Act, 1994 amendment to section 2(19A). The amended definition of "Deputy Commissioner" included an Additional Commissioner appointed under section 117(1), so the Additional Commissioner was competent on 31 October 1995 to accord the required sanction. The objection that the earlier assessment period deprived him of that authority was rejected. Limitation was treated as a matter for the assessing authorities and not as a ground for writ interference against the notice. The notice was therefore upheld and the writ challenge failed.

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Issues: Whether the notice issued under section 148 of the Income-tax Act, 1961 was invalid for want of sanction under section 151(2), whether an Additional Commissioner could grant such sanction after the amendment defining "Deputy Commissioner", and whether the objection of limitation could be examined in the writ proceedings.

Analysis: The definition of "Deputy Commissioner" in section 2(19A), as amended by the Finance Act, 1994 with effect from 1 June 1994, includes an Additional Commissioner appointed under section 117(1). The sanction in question was granted by the Additional Commissioner on 31 October 1995, when he was competent to exercise the powers of the Deputy Commissioner under section 151(2). The contention that the earlier assessment period disabled him from granting sanction was rejected. The plea of limitation was treated as an objection available before the assessing authorities and not as a ground for interference in the writ jurisdiction against a notice issued under section 148.

Conclusion: The notice under section 148 was held valid, the writ petition was dismissed, and the challenge to sanction and limitation failed.

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