Reassessment notice invalid where reopening beyond three years lacked sanction from the statutorily prescribed authority.

A reassessment notice issued after three years from the end of the assessment year was invalid because the statutory sanction for reopening had to be obtained from the Principal Chief Commissioner, not the Principal Commissioner. The failure to secure approval from the authority prescribed for the extended reopening period meant the jurisdictional precondition for section 148 was not met, and the defect went to the root of the proceedings. The notice was therefore quashed in favour of the assessee.

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Issues: (i) Whether the notice issued under section 148 of the Income-tax Act, 1961 was valid when sanction for reopening beyond three years from the end of the assessment year had been obtained from the Principal Commissioner instead of the Principal Chief Commissioner.

Analysis: The reassessment notice for the relevant assessment year was issued after the expiry of three years. In such a case, the statutory scheme requires approval from the authority specified for that extended period of reopening. Since approval was taken from the Principal Commissioner and not from the Principal Chief Commissioner, the jurisdictional precondition for issuing notice under section 148 was not satisfied. The defect went to the root of the reassessment proceedings and rendered the notice invalid.

Conclusion: The notice under section 148 was invalid and liable to be quashed, in favour of the assessee.

Ratio Decidendi: For reopening beyond three years from the end of the assessment year, sanction must be obtained from the authority statutorily prescribed for that extended period, and approval from an incorrect authority vitiates the reassessment notice.

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