Invalid sanction for reassessment reopening beyond four years led to quashing of the notice.

Reassessment reopening for an assessment year beyond four years required approval from the authority specified in section 151(1), namely the Principal Chief Commissioner, Chief Commissioner, Principal Commissioner or Commissioner, as applicable. Sanction granted by the Additional Commissioner did not satisfy the statutory requirement, so the reopening lacked valid approval and was not sustainable in law. The reassessment notice was therefore quashed on the ground of invalid sanction.

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Issues: Whether the reassessment reopening was valid when approval under section 151 was granted by the Additional Commissioner despite the case relating to an assessment year beyond four years.

Analysis: The reassessment was initiated for assessment year 2009-10 beyond the four-year period. The prescribed authority under section 151(1) in such a case was the Principal Chief Commissioner or Chief Commissioner or Principal Commissioner or Commissioner, as the case may be. Approval having been granted by the Additional Commissioner, the reopening was found to lack valid sanction and was not sustainable in law.

Conclusion: The reopening was quashed and the assessee succeeded on the challenge to validity of reassessment.

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