Invalid reassessment sanction under section 151 rendered the section 148 notice bad in law and the assessment void.

A reassessment notice issued after three years from the end of the assessment year required approval from the Principal Chief Commissioner or equivalent higher authority under section 151(1)(ii). Approval granted by the Principal Commissioner did not satisfy that statutory requirement, so the sanction was treated as invalid. The section 148 notice was therefore bad in law, and the consequential reassessment order was void ab initio.

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Issues: Whether the notice issued under section 148 of the Income-tax Act, 1961 and the reassessment proceedings were valid when the approval was granted by the Principal Commissioner instead of the authority prescribed under section 151(1)(ii), and whether the consequential assessment could survive.

Analysis: The reassessment notice for assessment year 2017-18 was issued after the expiry of three years from the end of the assessment year. In such a case, the prescribed approval was that of the Principal Chief Commissioner or the equivalent higher authority. The record showed approval by the Principal Commissioner instead. Following the view that sanction by the wrong authority is not valid approval, the reassessment was treated as not in accordance with law.

Conclusion: The notice under section 148 was held to be bad in law, and the consequential assessment order was declared void ab initio.

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