TaxTMI 
TaxTMI 
TaxTMI 
2026 (3) TMI 326
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....the time period as extended by the provisions of Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020 after excluding the period referred to in third proviso to Section 149 as explained by the Supreme Court in the case of UOI v. Rajeev Bansal [2024] 167 taxmann.com 70 (SC). As a result, the said notice as well as the entire assessment proceeding ought to have been declared as null and void. 2. On the facts and circumstances of the case and in law, the learned Assessing Officer has erred in issuing the order under Section 148A(d) and the notice under Section 148 after obtaining the approval of the approval of PCIT-20, Mumbai which was not the correct 'specified authority' as per Section 151 who should have approved it when three years have already elapsed from the end of the relevant assessment year. 3. On the facts and circumstances of the case and in law, the ITO, Ward 24(3)(1), Mumbai has erred in passing the order u/s. 148A(d) and also issuing the notice u/s. 148 without appreciating that he was not having the jurisdiction for the same in view of Section 151A and the notification issued thereunder notifying e-Assessment of ....
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....a reference no. PCIT-20/148 Approval/2022-23/528. The Ld. AR submitted that the sanction granted by the Pr. CIT-20, Mumbai beyond the prescribed period of three years from the end of the relevant assessment year was contrary to law and, therefore, vitiated the entire reassessment proceedings. 5. In furtherance of his submissions, the Ld. AR placed reliance on the judgment of the Hon'ble Bombay High Court in the case of Alag Property Construction Pvt. Ltd. v. ACIT (2025) reported in 179 taxmann.com 578 (Bom), and reproduced the relevant paragraphs 11 to 14 thereof as under: "11. The Hon'ble Supreme Court in the above case has drawn an illustration in para 78 of its order in the context of A.Y. 2017-18 (which is also the relevant Assessment year in the present Writ Petition) wherein it is categorically held that the authority specified under section 151(1) can accord sanction only upto 30.06.2021. This illustration makes it absolutely clear that when the period of three years from end of relevant Assessment Year expired between 20.03.2020 and 31.03.2021, the extension by virtue of TOLA was upto 30.06.2021 and not beyond. Thus, it can be said that the period of three y....
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....Section 149(1) of the Act under the new regime effective from 01.04.2021, no corresponding amendment was made to Section 151 of the Act. By virtue of Finance Act, 2023 effective from 01.04.2023, the following proviso was added to Section 151 of the Act. "Provided that the period of three years for the purposes of Clause (i) shall be computed after taking into account, the period of limitation as excluded by the third, fourth and fifth provisos or extended by the sixth proviso to sub section (1) of Section 149 of the Act." 7. Thus, as per Section 151 of the Act as it stood prior to its amendment by Finance Act, 2023, the limitation prescribed under Clause (i) of Section 151 of the Act was prior to expiry of three years from the end of the relevant assessment year and without benefit of further extension in terms with third, fourth or fifth proviso under sub section (1) of Section 149 of the Act. xxxxxxxxxxxxxxxxxxxxxxxxx 11. Similar view was reiterated by the Coordinate Bench in case of ACIT vs. Asha P. Kedia (Supra). It is relevant to observe, though the aforesaid decisions of the Coordinate Benches were rendered at a prior point of time and were....
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....nto Section 151 of the Act to extend the time limit u/s. 151(i) of the Act. 13. In view of aforesaid, I fully agree with the decision of my learned brother Accountant Member that, both the order passed u/s. 148A(d) of the Act and notice issued u/s. 148 of the Act are invalid due to lack of sanction by the specified authority as specified u/s. 151(ii) of the Act. As a natural corollary, the assessment order passed in consequence thereof is also invalid. Hence, the ground is allowed." 7. The Ld. DR argued and relied on the order of the revenue authorities. 8. We have carefully considered the rival submissions and perused the material available on record. The Ld. AR has raised a preliminary legal objection challenging the validity of the sanction granted under section 151 of the Act for issuance of notice under section 148 of the Act. On examination of the notice dated 30.06.2021 and the subsequent order passed under section 148A(d) of the Act, it is evident that the approval for initiation of reassessment proceedings beyond three years from the end of the relevant assessment year was granted by the Ld. Principal Commissioner of Income Tax-20, Mumbai. The legal position....