Section 151(ii) approval is mandatory for reassessment beyond three years; invalid sanction vitiates reopening.

Reassessment initiated beyond three years from the end of the relevant assessment year required prior approval from the authority specified in section 151(ii) of the Income-tax Act. Approval recorded by the Principal Commissioner did not satisfy that statutory requirement, so the sanction was defective. On that basis, the notice under section 148 was invalid and the reassessment proceedings under section 147 founded on it could not survive.

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Issues: Validity of reopening under sections 147 and 148 of the Income-tax Act, 1961 where the notice was issued beyond three years from the end of the relevant assessment year and approval was obtained from the Principal Commissioner instead of the authority specified under section 151(ii).

Analysis: The reassessment for assessment year 2016-17 was initiated beyond three years from the end of the relevant assessment year. In such a case, the amended provisions required prior approval from the authority specified in section 151(ii). The approval recorded in the notice was from the Principal Commissioner, which did not satisfy the statutory requirement. The absence of proper sanction rendered the notice under section 148 invalid, and the reassessment proceedings founded on that notice could not survive.

Conclusion: The reopening was held invalid and the notice under section 148, along with the proceedings under section 147, were quashed in favour of the assessee.

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