Reassessment approval under Section 151 failed on limitation, rendering the Section 148A(d) order and notice invalid.

Approval under Section 151 was found invalid where reassessment proceedings were initiated beyond the period prescribed in Section 149(1)(b). The approval form referred to Section 149(1)(b) for cases beyond three years but within ten years, yet the sanction was granted by the Commissioner after the relevant assessment year had expired, the form was unsigned, and no contemporaneous clarification or correction was recorded by the approving authority. In the absence of any recorded exclusion of time under the fifth proviso to Section 149, the jurisdictional basis for the Section 148A(d) order and Section 148 notice was not sustained, and the reassessment action was quashed.

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Issues: Whether the approval under Section 151 of the Income-tax Act, 1961 and the consequent order under Section 148A(d) and notice under Section 148 were valid where the proceedings were beyond the prescribed time limit under Section 149(1)(b).

Analysis: The approval form indicated recourse to Section 149(1)(b) for proceedings beyond three years but within ten years, yet the approving authority was only the Commissioner of Income Tax and the approval was granted after the expiry of the relevant assessment year. The approval was also unsigned and there was no indication that the approving authority corrected the form or recorded any contemporaneous clarification. In the absence of an reference to exclusion of time under the fifth proviso to Section 149, the approval could not sustain jurisdiction for the reassessment action.

Conclusion: The approval was invalid and the impugned order under Section 148A(d) and notice under Section 148 were quashed, in favour of the assessee.

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