TaxTMI 
TaxTMI 
2026 (3) TMI 1003
X X X X Extracts X X X X
X X X X Extracts X X X X
.... that the proceedings for AY 2017-18 are time barred as per section 149(1)(b) of Income Tax Act, 1961. 3. On the facts and circumstances of the case and law, the Ld CIT(A) erred in confirming reopening of assessment without considering the fact that the notice for reopening u/s 148 was issued by Jurisdictional assessing officer which is in violation of Faceless Assessment Scheme formulated under section 151A of Income Tax Act. 1961. 4. On the facts and circumstances of the case and law, the Ld. CIT(A) erred in confirming issue of notice u/s. 148 without considering the fact that the notice issued without mentioning DIN number on notice which is in violation of CBDT Circular No. 19 of 2019 dated 14.08.2019. 5. On the facts and circumstances of the case and law, the Ld. CIT(A) erred in confirming issue of notice u/s 148 without obtaining proper approval from appropriate authority under section 151 of Income Tax Act, 1961. 6. On the facts and circumstances of the case and law, the Ld. CIT(A) erred in confirming addition of Rs. 5,63,422/- u/s 69A of Income Tax Act, 1961 for the cash deposit during the demonization period without considering the fact ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....essee to respond to the same within two weeks in terms of provisions of section 148A(b) of the Act. 6. Rejecting the objections filed by the assessee, an order under section 148A(d) of the Act was passed on 26/07/2022 declaring that it is a fit case for issuance of notice under section 148 of the Act. Thereafter, on the same date, i.e. on 26/07/2022, notice under section 148 of the Act was issued by the Jurisdictional Assessing officer. After considering the submissions of the assessee filed during the reassessment proceeding, the AO passed the order dated 11/04/2023 under section 147 read with section 144B of the Act assessing the total income of the assessee at Rs. 35,06,420, after making an addition of Rs. 26 lakh, being the cash deposited in the joint bank account of the assessee maintained with his wife. 7. The learned CIT(A), vide impugned order, granted partial relief to the assessee and sustained the addition only to an extent of Rs. 5,63,422. Being aggrieved, the assessee is in appeal before us. 8. We have considered the submissions of both sides and perused the material available on record. Before proceeding further, it is essential to note the provisions of the ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....or the purpose of section 148 shall be the Specified Authority as referred to in section 151 of the Act. 10. Further, section 151 of the Act deals with the Specified Authority for section 148 and section 148A of the Act, and the same reads as follows: - "151. Specified 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 Chief Commissioner or Director General, if more than three years have elapsed from the end of the relevant assessment year." 11. Therefore, from the plain reading of section 151 of the Act, it is evident that in case where more than three years have elapsed from the end of the relevant assessment year, the Specified Authority for the purpose of granting prior approval, as required under section 148 of the Act, is Principal Chief Commissioner or Principal Director General or Chief Commissioner or Director General. 12. As per the assessee, in the present case, the period of t....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... Therefore, the Assessing Officer was required to obtain prior approval of the 'specified authority' according to Section 151 of the new regime before passing an order under Section 148A(d) or for issuing a notice under Section 148. (b) Under the new regime, if income escaping assessment is more than Rupees 50 lakhs, a reassessment notice could be issued after the expiry of three years from the end of the relevant previous year only after obtaining the prior approval of the Principal Chief Commissioner or the Principal Director General or the Chief Commissioner or the Director General. (c) Section 151(ii) of the new regime prescribes an approval of a higher 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 limits prescribed under section 151 vitiates their jurisdiction to issue a notice under section 148. (d) Grant of sanction by the specified authority is a precondition for the assessing officer to assume jurisdiction under section 148 to issue a reassessment notice. 9. In the present case, the period of three years from the en....
X X X X Extracts X X X X
X X X X Extracts X X X X
....of the Act. 13. We are clearly of the view that the present matter stands covered by the decision of Hon'ble Supreme Court in the case of Rajeev Bansal (supra) and we are bound by it. Accordingly, we hold that the order dated 18.08.2022 passed under Section 148A(d) of the Act and the consequential notice issued under section 148 dated and 23.08.2022 are bad in law, and hence, are required to be quashed and set aside. 14. We accordingly set aside the impugned order dated 18.08.2022 passed under Section 148A(d) of the Act and the consequential notice issued under section 148 dated 23.08.2022, and all other proceedings/orders emanating therefrom." 14. From the perusal of the order dated 26/07/2022 passed under section 148A(d) of the Act, which forms part of the paper book from pages 7-10, we find that the same was issued after seeking approval from Principal Commissioner of Income Tax - 1, Thane. Furthermore, the three-year period from the end of the relevant assessment year, i.e., 2017-18, as extended by the provisions of the TOLA, also expired in the present case on 30/06/2021. 15. Therefore, respectfully following the decision of the Hon'ble Jurisdiction....