TaxTMI 
TaxTMI 
2025 (7) TMI 245
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....s challenged the addition of Rs. 64,00,000/- which were based on some Whats App chat. 3. One of the issues which have been raised before us is that, the approval on the notice u/s 148 has not been given by the appropriate authority. Since notice u/s 148 has been issued after 3 years from the end of the relevant assessment year, therefore, the sanctioning authority should be Principal CCIT or CCIT and here in this case PCIT has approved the notice which is bad in law. Before us it has been stated that here in this case assessee has filed his return of income for A.Y. 2018-19 on 31/10/2018 declaring total income of Rs. 10,47,430/-. There was a search and seizure action u/s.132 in the case of "Phantom Films Pvt. Ltd." and other groups on 03....
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....perusal of the records we find that it is not in dispute that three years to issue notice u/s.148 for the A.Y. 2018-19 had expired on 31/03/2022. Section 151 of the Act as applicable w.e.f. 01/04/2021 to 01/09/2024, the specified authority for sanction of notice for the purpose of Section 148 and 148A provides that if the notice has been issued before three years from the end of the relevant assessment year, then ld. PCIT or ld. CIT can grant approval / sanction the notice; and if it is more than three years, then ld. Pr. Chief Commissioner or ld. Chief Commissioner are the specified authorities who can sanction the notice. Here in this case, the notice u/s.148 has been issued on 06/04/2022 which is clearly more than three years from the en....
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....ar Principal Commissioner or Principal Director or Commissioner or Director Section 151(ii) of the new regime More than three years have elapsed from the end of the relevant assessment year Principal Chief Commissioner or Principal Director General or Chief Commissioner or Director General 74. The above table indicates that the specified authority is directly co-related to the time when the notice is issued. This plays out as follows under the old regime: (i) If income escaping assessment was less than Rupees one lakh: (a) a reassessment notice could be issued under section 148 within four years after obtaining the approval of the Joint Commissioner; and (b) no notice could be issued after the expiry of four ye....
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....ng the prior approval of the Principal Chief Commissioner or Principal Director General or Chief Commissioner or Director General. 76. Grant of sanction by the appropriate authority is a precondition for the assessing officer to assume jurisdiction under section 148 to issue a reassessment notice. Section 151 of the new regime does not prescribe a time limit within which a specified authority has to grant sanction. Rather, it links up the time limits with the jurisdiction of the authority to grant sanction. Section 151(ii) of the new regime prescribes a higher level of authority if more than three years have elapsed from the end of the relevant assessment year. Thus, non-compliance by the assessing officer with the strict time limi....
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....s clearly clarified that under the provision brought by the Finance Act, 2021, ld. AO was required to obtain prior approval or sanction of the specified notice at four stages. Here in this case, the order u/s. 148A (d) and final notice u/s. 148 has been issued with the prior approval or sanction of ld. PCIT who had no authority to grant approval. Accordingly, on this ground alone, the entire notice u/s.148 deserves to be quashed. Accordingly, the notice u/s.148 dated 06/04/2022 is quashed as invalid as sanction of the notice has been given by the ld. PCIT instead of Pr. CCIT or ld. CIT. Accordingly, the entire re-assessment order is quashed. 8. In the result, appeal of the assessee is allowed on legal grounds. Order pronounced on 22nd....