2026 (3) TMI 337 - AT - Income Tax

Validity of Section 148 notice fails where prior Section 151 approval and genuine application of mind were lacking, assessment quashed.

Challenge concerned validity of a reassessment notice under Section 148 where the notice omitted material particulars and was issued without evidence of ... Validity of notice u/s 148 - requirement of prior approval u/s 151 ignored - invalid notice - non independent application of mind - HELD THAT:- Tribunal found that the notice issued u/s 148 was vague, mechanical and issued without application of mind because various entries were left blank and nothing was struck out, reflecting no considered exercise of jurisdiction by the AO. Record shows that the AO recorded a satisfaction note on the same date and issued the notice without obtaining prior approval from the competent authority u/s 151. It is also noted that in the said notice issued u/s. 148 of the Act, there is nothing is strike off and everything left open/blank by the ITO, Ward 2(2), Ghaziabad which shows that the notice is invalid and the consequent assessment on the basis of this invalid notice has become void ab initio, thus, the assessment order is erroneous and quashed on this account. [Paras 7, 10] Notice u/s 148 invalid for being vague and issued without prior approval u/s 151 consequent assessment held void ab initio and quashed. Final Conclusion: Reassessment founded on the invalid notice is quashed and the assessment for A.Y. 2009-10 is held void ab initio. Issues: Whether the notice issued under Section 148 of the Income-tax Act, 1961 was validly issued with prior approval under Section 151 and sufficient application of mind, and whether the assessment framed thereon under Section 143(3)/147 of the Income-tax Act, 1961 is void ab initio.Analysis: The notice under Section 148 at the material time left material particulars blank and was mechanistic in form. The record indicates a satisfaction note recorded contemporaneously but there is no evidence of prior approval or sanction under Section 151 of the Income-tax Act, 1961 being obtained before issuance of the notice. The notice's vagueness and absence of required prior approval demonstrate lack of application of mind in initiating the reassessment proceedings under Section 147.Conclusion: The notice issued under Section 148 of the Income-tax Act, 1961 is invalid for being vague and issued without the requisite prior approval under Section 151, and the consequent assessment under Section 143(3)/147 of the Income-tax Act, 1961 is quashed; appeal allowed in favour of the assessee.