TaxTMI 
TaxTMI 
2025 (8) TMI 135
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....as undisclosed expenditure was incorrect, as the credit card transactions pertain to corporate expenses incurred on behalf of Trade Wings Limited. 5. Mischaracterization of Expenses The CIT(A) failed to consider that credit card expenses were reimbursed by Trade Wings Limited and related to business transactions. 6. Denial of Opportunity The CIT(A) dismissed the appeal without sufficient opportunity to present evidence and rebut AO's findings. 7. The appellant reserves his right to add, amend alter or delete any of the grounds of appeal." 2. The assessee also filed the following additional ground: "On the facts and circumstances of the case and in law, the notice issued u/s 148 of the Income Tax Act, 1961 dated 11.7.2022 is bad in law and void ab initio inasmuch as it has been issued after obtaining approval of the Principal Commissioner of Income Tax, whereas, as per the provisions of amended Section 151(ii) of the Act, it should have been issued after obtaining the approval of the Principal Chief Commissioner or Chief Commissioner of Income-tax, the reassessment having been initiated after expiry of three years from the end....
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....was issued on 25.07.2022 after obtaining the prior approval from Pr. CIT-15, Delhi for reopening of assessment for the AY 2016-17. As per the provisions of section 151(2) for reopening an assessment by issue of a notice u/s 148 of the Act beyond a period of 3 years from the end of the relevant assessment year approval has to be obtained from the Pr. Chief Commissioner or Chief Commissioner of Income Tax. But whereas in the case of the assessee approval was obtained from Pr. CIT making the notice issued u/s 148 of the Act dated 25.07.2022 as bad in law. 8. We observed that the Hon'ble Supreme Court in the case of Rajiv Bansal (supra) decided the time limits of getting an approval from the appropriate authority u/s 151 of the Act before issue of notice u/s 148 to the cases where the Revenue has invoked the provisions of section 148 of the Act pursuant to the directions of the Hon'ble Supreme Court in the case of Union of India vs. Ashish Agarwal. The observations of the Hon'ble Supreme Court are as under: - "73. Section 151 imposes a check upon the power of the Revenue to reopen assessments. The provision imposes a responsibility on the Revenue to ensure that it obtains t....
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....of Section 151 of the new regime is thus: (i) If income escaping assessment is less than Rupees fifty lakhs: (a) a reassessment notice could be issued within three years after obtaining the prior approval of the Principal Commissioner, or Principal Director or Commissioner or Director; and (b) no notice could be issued after the expiry of three years; and (ii) If income escaping assessment is more than Rupees fifty lakhs: (a) a reassessment notice could be issued within three years after obtaining the prior approval of the Principal Commissioner, or Principal Director or Commissioner or Director; and (b) after three years after obtaining 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) ....
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.... that income chargeable to tax has escaped assessment. It must be noted that this requirement has been deleted by the Finance Act 2022; c. Section 148A(d) - to pass an order deciding whether or not it is a fit case for issuing a notice under Section 148; and d. Section 148-to issue a reassessment notice. 80. In Ashish Agarwal (supra), this Court directed that Section 148 notices which were challenged before various High Courts "shall be deemed to have been issued under Section 148-A of the Income Tax Act as substituted by the Finance Act, 2021 and construed or treated to be show-cause notices in terms of Section 148-A(b)." Further, this Court dispensed with the requirement of conducting any enquiry with the prior approval of the specified authority under Section 148A(a). Under Section 148A(b), an assessing officer was required to obtain prior approval from the specified authority before issuing a show cause notice. When this Court deemed the Section 148 notices under the old regime as Section 148A(b) notices under the new regime, it impliedly waived the requirement of obtaining prior approval from the specified authorities under Section 151 for Section 14....
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....authority for the purposes of section 148 and section 148A shall be, - (i) Principal Commissioner or Principal Director or Commissioner or Director, if three years or less than three years have elapsed from the end of the relevant assessment year; (ii) Principal Chief Commissioner or Principal Director General or where there is no Principal Chief Commissioner or Principal Director General, Chief Commissioner or Director General, if more than three years have elapsed from the end of the relevant assessment year. 15. In assessee's case from the perusal of para 3 of the notice issued under section 148 for AY 2016-17 we notice that the same is issued with the prior approval of Pr.CIT-19 Mumbai accorded on 29.07.2022 vide reference No. Pr. CIT- 19/148/2022-23 and this fact is not contravened by the Id DR. For AY 2016-17, the period of three years have elapsed as of 31.03.2020 and the notice is issued beyond three years on 30.07.2022. Therefore as per the decision of the Hon'ble Supreme Court, the approval should have been obtained under the amended provisions of section 151 (ii) of the Act i.e. the approval should have been obtained from the Principal ....