2026 (1) TMI 1589

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....sessment Order dated 22.04.2023 passed u/s. 147 r.w.s.144 r.w.s.144B of the Income Tax Act, 1961 (in short 'the Act'). 2. Revenue has raised following grounds of appeal : "1. On the facts and in the circumstances of the case and in law the learned CIT(A) erred in holding that additions made on issues other than the one forming part of the "reasons to believe" for reopening were outside the scope of section 147, without appreciating that Explanation 3 to section 147, as inserted by the Finance (No. 2) Act, 2009, expressly empowers the Assessing Officer to assess or reassess any other income that comes to his notice during reassessment proceedings. 2. The learned CIT(A) erred in deleting the addition of Rs. 1,20,27,224 ma....

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....questing for not pressing Ground Nos. 2 and 3 raised in the Cross Objection and stated that assessee deserves to succeed on Ground No. 1 raised in the Cross Objection as there is no proper approval u/s.151 of the Act prior to issuance of notice u/s.148 of the Act on 26.07.2022. In support of its contention, he submitted that case of the assessee is for A.Y. 2017-18 and the alleged escapement of income is less than Rs. 50.00 lakh and the notice u/s.148A(d) has been issued after three years and therefore the approval ought to have been taken from the Principal Chief Commissioner but the Assessing Officer while issuing notice u/s.148 of the Act on 26.07.2022 has taken approval from the Principal Commissioner of Income Tax which is not in accor....

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....gh Court)." 4. On the other hand, ld. Departmental Representative supported the order of ld. CIT(A) on the issue of approval. 5. We have heard the rival contentions and perused the record placed before us. We observe that the assessee is an individual and the return of income for A.Y. 2017-18 filed on 17.03.2018 declaring income of Rs. 20,31,900. Ld. Assessing Officer based on the information about explained cash credit/investment amounting to Rs. 45,76,025 had reason to believe that income to this extent has escaped assessment and has issued notice u/s. 148 of the Act on 26.07.2022 after taking approval from the Principal Commissioner, Nashik. Now the issue raised by the assessee in Ground No. 1 of the Cross Objection that since the ....

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....e 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 years from the end of the relevant Assessment Year (in the present case A.Y. 2017-18) expired on 30.06.2021, whereas Respondent No.1, despite passing ....