Reassessment beyond four years needs prior approval under section 151(1), making the notice invalid without that safeguard.

A notice issued under section 148 beyond four years from the end of the relevant assessment year requires prior approval under section 151(1), and that safeguard applies even where the original assessment was completed by an Assessing Officer. The provision, read with the amended scheme and the administrative circular, was construed to require higher-level satisfaction before reopening, in order to maintain parity between scrutiny and non-scrutiny assessments and avoid a gap in the statutory framework. On that interpretation, the notice was invalid for want of the requisite approval, and the question of law was answered against the Revenue and in favour of the assessee.

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Issues: Whether a notice under section 148 issued beyond four years from the end of the relevant assessment year was invalid for want of approval under section 151(1) of the Income-tax Act, 1961, where the original assessment had been completed by the Assessing Officer.

Analysis: The provision was examined in light of the amendments to section 151 and the administrative circular explaining the revised scheme. The language of the proviso was held capable of more than one construction, but the interpretation adopting a prior approval requirement was preferred. The reasoning emphasized that, for reassessment beyond four years, a higher-level satisfaction must be recorded before issuance of notice under section 148, and that this safeguard applies even where the assessment was framed by a Deputy Commissioner or Assistant Commissioner. The construction also maintained parity between scrutiny and non-scrutiny assessments and avoided a disconnect in the statutory scheme.

Conclusion: The notice was held to be invalid without the requisite approval under section 151(1), and the answer to the question of law was against the Revenue and in favour of the assessee.

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