Statutory approval for reassessment beyond three years was invalid when granted by an authority not specified by law.

A reassessment notice issued after three years from the end of the relevant assessment year required approval under section 151(ii) from the Principal Chief Commissioner, Principal Director General, Chief Commissioner or Director General. For AY 2018-19, approval for the section 148 notice was granted by the Principal Commissioner, who was not an authority specified for that period. The subsequently inserted section 292BC did not cure approval by an unauthorised authority. Consequently, the reassessment notice and consequential assessment lacked jurisdiction and were quashed in favour of the assessee.

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Issues: Whether a reassessment notice issued after three years from the end of the relevant assessment year was valid where approval was obtained from the Principal Commissioner rather than the authority specified under section 151(ii).

Analysis: For AY 2018-19, the notice under section 148 was issued on 08.04.2022, after expiry of three years from the end of that assessment year. Under the substituted reassessment regime, approval in such a case had to be obtained from the Principal Chief Commissioner, Principal Director General, Chief Commissioner or Director General. The approval was instead granted by the Principal Commissioner, who lacked statutory authority. The subsequently inserted section 292BC did not cure approval by an authority other than the authority statutorily specified.

Conclusion: The reassessment notice and consequential assessment lacked valid jurisdiction and were quashed, in favour of the assessee.

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