Generate professional replies, appeals, opinions to Show Cause Notices, assessment orders, audit objections, and other legal communications using TaxTMI's AI Drafter.
High Court rules assessment reopening invalid under Income Tax Act The High Court of Bombay ruled in favor of the petitioner, finding the re-opening of assessment for the assessment year 2015-16 invalid due to improper ...
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
High Court rules assessment reopening invalid under Income Tax Act
The High Court of Bombay ruled in favor of the petitioner, finding the re-opening of assessment for the assessment year 2015-16 invalid due to improper approval under Section 151 of the Income Tax Act, 1961. The court held that the approval by the Additional Commissioner of Income Tax and Joint Commissioner of Income Tax was not valid, as it should have been granted by higher authorities. Consequently, the court granted the petitioner's prayer clause, quashing the notice and subsequent order.
Issues: 1. Validity of re-opening of assessment for A.Y. 2015-16 based on approval under Section 151 of the Income Tax Act, 1961.
Analysis: The High Court of Bombay addressed the issue of the validity of the re-opening of assessment for the assessment year 2015-16, focusing on the primary ground of invalid approval under Section 151 of the Income Tax Act, 1961. The court noted that the approval for re-opening was given by the Additional Commissioner of Income Tax (ACIT) and Joint Commissioner of Income Tax, instead of the authorized Principal Chief Commissioner, Chief Commissioner, Principal Commissioner, or Commissioner. Referring to a previous judgment, the court emphasized that since more than four years had elapsed from the end of the relevant assessment year, the Taxation and Other Laws (Relaxation of Certain Provisions) Act, 2020, would not apply. Consequently, the court held that only the designated higher authorities could have accorded the approval for re-opening, rendering the notice dated 26th March, 2021, and the subsequent order on objections dated 6th February, 2022, invalid.
The court allowed the petition in favor of the petitioner, granting the prayer clause seeking a Writ of Certiorari or any appropriate writ to quash and set aside the notice dated 26th March, 2021, and the subsequent order dated 6th February, 2022. The petition was disposed of accordingly, affirming the invalidity of the re-opening of assessment based on the lack of proper approval under Section 151 of the Income Tax Act, 1961.
Full Summary is available for active users!
Note: It is a system-generated summary and is for quick reference only.
TaxTMI 
AI Drafter ✕
Generate professional replies, appeals, opinions to Show Cause Notices, assessment orders, audit objections, and other legal communications using TaxTMI's AI Drafter. 
of 
TaxTMI 
