Reassessment approval under section 151 by the wrong authority renders a late reopening without jurisdiction.

Where reassessment notices under sections 148A(d) and 148 were issued beyond three years from the end of the relevant assessment year, prior approval had to come from the higher specified authority under section 151. Approval obtained from the Principal Commissioner instead of that higher authority was insufficient, so the reopening was without jurisdiction and invalid. The ITAT Pune therefore quashed the reassessment proceedings in favour of the assessee.

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Issues: (i) whether the reassessment proceedings were valid when approval under section 151 was obtained from the Principal Commissioner of Income Tax, although the notice under section 148 was issued after three years from the end of the relevant assessment year.

Analysis: The Tribunal noted that for assessment year 2016-17 the notices under section 148A(d) and section 148 were issued on 19.07.2022, i.e. beyond three years from the end of the relevant assessment year. In such a case, the prescribed specified authority under section 151 is the higher authority contemplated by clause (ii), not the Principal Commissioner of Income Tax under clause (i). Following the identical view taken in the assessee's own case for the subsequent assessment year, the Tribunal held that approval from the wrong authority rendered the reopening invalid and without jurisdiction.

Conclusion: The reassessment proceedings were held to be invalid and were quashed, in favour of the assessee.

Ratio Decidendi: Where a notice for reassessment is issued beyond three years from the end of the relevant assessment year, prior approval must be obtained from the higher specified authority mandated by section 151, and approval by a lower authority is insufficient to sustain the reopening.

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