Tax reassessment notice approval u/s151: whether sanction needed independent reasons; s.148 notice upheld, challenge dismissed. The dominant issue was whether reassessment proceedings were invalid for want of proper sanction under s. 151 of the Income-tax Act, where the approving ...
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The dominant issue was whether reassessment proceedings were invalid for want of proper sanction under s. 151 of the Income-tax Act, where the approving authority did not record independent reasons. The SC affirmed that the AO had recorded "reasons to believe" for income escaping assessment and annexed them to the approval request; the approving authority considered those reasons and recorded written satisfaction that it was a fit case for issuance of notice under s. 148. Since s. 151 does not mandate the approving authority to supply separate reasons beyond recording satisfaction on the AO's reasons, the notice under s. 148 was upheld and the challenge failed; the SLP was dismissed.
The Supreme Court, composed of Chief Justice Sanjiv Khanna, Justice Sanjay Kumar, and Justice K.V. Viswanathan, issued an order regarding a special leave petition. The Court, after hearing the counsel, decided to condone the delay but found "no good ground and reason to interfere with the impugned judgment." Consequently, the special leave petition was dismissed. All pending applications related to the case were also disposed of.
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