Reassessment notice invalid for wrong approval authority under section 151(ii), so the reopening and resulting order were quashed.

Reopening under section 148 was invalid because, for reassessment initiated after 1 April 2021, prior approval had to be obtained from the higher authority specified in section 151(ii). Approval taken from the PCIT instead of that prescribed authority did not satisfy the statutory for valid issuance of the notice. As the notice itself was void, the reassessment order based on it could not stand and was quashed; the remaining grounds in the Revenue's cross appeal became infructuous.

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Issues: Whether the reassessment notice issued under section 148 and the consequent reassessment order were valid when prior approval was obtained from PCIT instead of the prescribed authority under section 151(ii) of the Income-tax Act, 1961.

Analysis: The reassessment for A.Y. 2016-17 was initiated after 1 April 2021, when the new regime of section 151 applied. For notices issued beyond the relevant period, prior approval had to be taken from the higher specified authority mandated by section 151(ii). Since the notice dated 30.07.2022 had been issued with approval of PCIT(Central), Kanpur and not the authority required by section 151(ii), the statutory condition for valid reopening was not satisfied. Once the notice itself was invalid, the reassessment order based on it could not survive, and the remaining grounds in both appeals became infructuous.

Conclusion: The notice under section 148 and the reassessment order were quashed. The assessee succeeded and the Revenue's cross appeal did not survive.

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