TaxTMI 
TaxTMI 
2025 (11) TMI 1975
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....icer through Insight portal that during the financial year 2015-16 relevant to assessment year 2016-17 the assessee has made cash deposit of Rs. 5,12,02,695/- in his bank account maintained with M/s. Shri Renuka Mata Multi State Urban Co-operative Credit Society Ltd. On verification of the e-filing record it was noticed that for the impugned assessment year the assessee has declared income of Rs.3,65,210/-. Accordingly, the re-opening assessment proceedings were initiated and notice u/s 148 of the Act was issued to the assessee on 20.04.2021. In the meanwhile, several writ petitions were filed by certain assessee before the different Hon'ble High Courts across the country challenging the validity of similar notices issued u/s 148 of the IT Act. Thereafter, matter reached before Hon'ble Supreme Court. The Hon'ble Supreme Court has passed a judgement in Civil Appeal No.3005/2022 vide order dated 04.05.2022 (2022 SCC online SC 543) in the case of Union of India Vs. Ashish Agarwal on the validity of the issue of notice u/s 148 of the Act for re-assessment during the period beginning on 1st April 2021 and ending on 30th June 2021 i.e. the time extended by the Taxation and Ot....
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....e, may be declared as null and void in law. 3] The assessee submits that the notice u/s 148 dated 19.07.2022 issued by the Jurisdictional A.O. i.e. ITO, Ward 1(1), Nashik is illegal in view of the law laid down by Hon'ble Bombay High Court in case of Hexaware Technologies Ltd. v. ACIT [W.P. No. 1778/2023] and hence, the said notice u/s 148 may be declared as null and void in law. 4] The assessee submits that the notice u/s 148 dated 19.07.2022 issued without quoting DIN No in the body of the said notice is illegal in view of the law laid down by Hon'ble Bombay High Court in case of Hexaware Technologies Ltd. v. ACIT [W.P. No.1778/2023] and hence, the said notice u/s 148 may be declared as null and void in law. 5] The assessee submits that the application sent by the A.O to the higher authority for obtaining approval u/s 151 and the approval u/s 151 obtained from the Higher Authority u/s 151 has not been confronted to the appellant along with the Notice u/s 148 and hence, the notice u/s 148 may be declared as null and void in view of the law laid down by Hon'ble Delhi High Court in Tia Enterprises (P) Ltd. Vs. ITO [(2024) 468 ITR 5] and other d....
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....ence the same are dismissed as 'not pressed'. 7. So far as the remaining grounds are concerned, these all relate to the validity of re-assessment proceedings u/s 147 of the Act in absence of the requisite approval u/s 151 of the Act and the addition on merit. 8. So far as the validity of re-assessment proceedings are concerned, the Ld. Counsel for the assessee at the outset submitted that the notice was issued u/s 148 of the Act with the approval of the PCIT-1, Nashik. He submitted that since the assessment year involved in the instant case is assessment year 2016-17 and the notice u/s 148A(d) and the notice u/s 148 of the Act were issued on 19.07.2022 which were beyond the period of 3 years from the end of the relevant assessment year, therefore, the specified approving authority as per provisions of section 151 of the Act is the Principal Chief Commissioner or Principal Director General or where there is no Principal Chief Commissioner or Principal Director General then, the Chief Commissioner or Director General. He submitted that since in the instant case valid approval has not been taken, therefore, such re-assessment proceedings being not in accordance with law be quash....
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....gh 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. I 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 copy of the order passed, if required, under cl. (d) of s. 148A, requiring him to furnish within such period, as may be specified in such notice, a return of his income or the income of any other person in respect of which he is assessable under this Act during the previous year corresponding to the relevant assessment year, in the prescribed form and verified in the prescribed manner and setting forth such other particulars as may be prescribed; and the provisions of this Act shall, so far as may be, apply accordingly as if such return were a return required to be furni....
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....her person on or after the 1st day of April, 2021, pertains or pertain to, or any information contained therein, relate to, the assessee, the AO shall be deemed to have information which suggests that the income chargeable to tax has escaped assessment in the case of the assessee where the search is initiated or books of account, other documents or any assets are requisitioned or survey is conducted in the case of the assessee or money, bullion, jewellery or other valuable article or thing or books of account or documents are seized or requisitioned in case of any other person. Explanation. 3. For the purposes of this section, specified authority means the specified authority referred to in s. 151." 7. A perusal of the above provision would show that, before issuing any notice under s. 148, the AO has to obtain prior approval of the specified 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: "Specif....