TaxTMI 
TaxTMI 
TaxTMI 
2025 (9) TMI 651
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.... the legal issue raising ground No. 1 challenging the validity of the re-assessment proceedings as no valid approval u/s 151 of the act has been obtained by the Assessing Officer (AO) for issuing notice u/s 148 of the Act. 3. At the outset Ld. Counsel for the assessee submitted that the assessment for A.Y. 2017-18 has been reopened by issuance of notice u/s 148 of the Act on 20.07.2022 and for issuing such notice a proper approval u/s 151 of the Act needs to be taken and Ld. AO has obtained the approval from Principal Commissioner of Income Tax, Nashik dated 15.07.2022. He submitted that since the notice has been issued beyond three years from the end of assessment year the specific approval authority prescribed u/s 151 of the Act is Princ....
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....l for the assessee has referred and relied on plethora of decisions and judgements. I would however like to refer to the judgement of the Hon'ble High Court of Madras in the case of Core Logistic Company (Supra) wherein Hon'ble Court dealing with the very same issue has held as under:- 5. 1 have given due considerations to the submissions made on either side and perused the materials available on record. 6. In the present case, the issue is pertaining to the asst. yr. 2016-2017. The relevant law applicable for issuance of notice under s. 148 is as follows: "148. Before making the assessment, reassessment or re-computation under s. 147, and subject to the provisions of s. 148A. the AO shall serve on the assessee a notice, along with a ....
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....o time; (ii) any audit objection to the effect that the assessment in the case of the assessee for the relevant assessment year has not been made in accordance with the provisions of this Act, or (iii) any information received under an agreement referred to in s. 90 or s. 90A of the Act; or (iv) any information made available to the AO under the scheme notified under s. 135A or (v) any information which requires action in consequence of the order of a Tribunal or a Court Explanation. 2 For the purposes of this section, where,- (1) a search is initiated under s. 132 or books of account, other documents or any assets are requisitioned under s. 132A, on or after the 1st day of April, 2021, in the case of the assessee, or (ii) a s....
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....fied authority to issue such notice. The specified authority is also defined in explanation of the above provision. As per the above provision, specified authority is the authority who referred to in s. 151. 8. At this juncture, it would be relevant to extract the provision of s. 151, which is as follows: "Specified authority for the purposes of s. 148 and s. 148A shall be: (1) Principal CIT or Principal Director or CIT or Director, if three years or less than three years have elapsed from the end of the relevant assessment year; (ii) Principal Chief CIT or Principal Director General or Chief CIT or Director General, if more than three years have elapsed from the end of the relevant assessment year." 9. A perusal of s. 151(1) woul....
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....ces u/s 148 of the Act for carrying out the reassessment proceedings for A.Y. 2017-18 has been issued on 20.07.2022. Also the first notice u/s 148A(b) has been issued on 26.05.2022. Therefore the notices u/s 148 of the Act has been issued after three years from the end of the Assessment Year. Now since the notice has been issued after three years from the end of A.Y. 2017-18, Ld. AO is required to take approval u/s 151 of the Act from Principal Chief Commissioner, Income Tax and other Officers mentioned in section 151(ii). However Ld. AO in the instant case has taken the approval from the authorities mentioned in section 151(i) of the Act i.e. from Principal Commissioner of Income Tax and such approval is valid only if the notice u/s 148 of....