Reassessment notice invalid where approval came from the wrong authority, and sanction under section 151(ii) was mandatory.

A reassessment notice issued under the new regime after three years from the end of the relevant assessment year required prior sanction from the authority specified in section 151(ii), namely the Principal Chief Commissioner or equivalent higher authority. Because the notice recorded approval only from the Principal Commissioner, the statutory precondition for valid issuance was not satisfied, and the defect was not cured by that lower-level approval. The notice under section 148 was therefore held invalid and quashed, making examination of the reassessment merits unnecessary.

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Issues: Whether the notice issued under section 148 for Assessment Year 2017-18 was valid when prior approval was taken from the Principal Commissioner instead of the authority specified under section 151(ii); and whether the reassessment initiation could survive on that basis.

Analysis: The notice was issued after three years from the end of the relevant assessment year. Under the new reassessment regime, the specified authority for issuing a notice under section 148 in such a case is the Principal Chief Commissioner or the equivalent higher authority under section 151(ii). The notice itself recorded approval from the Principal Commissioner, and that approval was not disputed. Since the statutory requirement of sanction from the proper authority was not met, the notice suffered from a legal infirmity. Once the notice was held invalid, examination of the merits of the addition became unnecessary.

Conclusion: The notice under section 148 was quashed for want of approval by the appropriate authority, and the challenge of the assessee succeeded.

Ratio Decidendi: Where reassessment notice under the new regime is issued after the prescribed period, sanction must be obtained from the authority mandated by section 151(ii); approval by a lower authority does not cure the defect and renders the notice invalid.

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