Court quashes tax assessment notices for lack of approval, deems reopening proceedings unsustainable.

The Court allowed the petitions, quashed the impugned Notices for the assessment years in question due to lack of approval under Section 151 of the Income-tax Act, 1961. The Tribunal's decision setting aside directions from the Commissioner of Income-tax [Appeals] rendered the reopening proceedings unsustainable. The Court clarified that the quashing was without prejudice to potential revival based on the Revenue's appeal outcome reinstating the directions.

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Issues:
1. Reopening of assessment beyond the statutory time limit.
2. Requirement of obtaining approval under Section 151 of the Income-tax Act, 1961.
3. Impact of directions issued by the Commissioner of Income-tax [Appeals] on reopening of assessments.
4. Quashing and setting aside of impugned Notices for various assessment years.
5. Potential revival of writ petitions based on the outcome of the Revenue's appeal.

Analysis:
1. The petitioner-assessee challenged the impugned Notices issued under Section 148 of the Income-tax Act, 1961, seeking to reopen assessments for different years. The main contention was the reopening of assessments beyond the statutory time limits, i.e., six years for one year and four to six years for others.

2. The petitioner argued that the Assessing Officer did not obtain approval under Section 151 of the Act before reopening the assessments. The Revenue contended that approval was unnecessary based on directions from the Commissioner of Income-tax [Appeals] in a related appeal. The Patna High Court's decision was cited to support the Revenue's position on reassessment proceedings initiated post-appeal.

3. However, after the impugned Notices were issued, the Income Tax Appellate Tribunal set aside the directions issued by the Commissioner of Income-tax [Appeals]. This action rendered the reopening proceedings unsustainable due to the lack of approval under Section 151 of the Act.

4. The Court noted that as of the current situation, the Tribunal's decision stands unchallenged by the Revenue. Consequently, the approval under Section 151 was necessary, which was not obtained. The Court allowed the petitions and quashed the impugned Notices for the respective assessment years.

5. The Court clarified that the quashing of the Notices was without prejudice to any rights and contentions in the potential appeal by the Revenue against the Tribunal's decision. If the Revenue succeeds in the appeal and the directions issued by the Commissioner of Income-tax [Appeals] are reinstated, the Revenue can file appropriate applications to revive the writ petitions for further consideration.

In conclusion, the Court allowed the petitions, quashed the impugned Notices for the assessment years in question, and left room for potential revival based on the outcome of the Revenue's appeal against the Tribunal's decision.

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