TaxTMI 
TaxTMI 
2026 (5) TMI 451
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.... Appeal Centre ('Ld. CIT(A)/NFAC' for short), New Delhi dated 18/12/2024 for the Assessment Year 2018-19. 2. Brief facts of the case are that, the Assessee is a Private Limited Company and the return was filed declaring total income of Rs. 1,19,74,950/-. The case of the Assessee was reopened under Section 147 of the Act on the basis of information received that the Assessee had made bogus sale or purchase of Rs. 85,85,625/- from M/s RCI Industries and Technologies Ltd. An assessment order came to be passed under Section 147 r.w. Section 144B of the Act on 29/05/2023 by making an addition of Rs. 85,85,625/- on account of bogus sale/purchase under Section 68 of the Act. Aggrieved by the assessment order dated 29/05/2023, Assessee preferred....
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....ported in [2024] 469 ITR 46, held as under:- "iii. Sanction of the specified authority 73. Section 151 imposes a check upon the power of the Revenue to reopen assessments. The provision imposes a responsibility on the Revenue to ensure that it obtains the sanction of the specified authority before issuing a notice under section 148. The purpose behind this procedural check is to save the assessees from harassment resulting from the mechanical reopening of assessments Sri krishna (P.) Ltd. v. ITO [1996] 87 Taxman 315/221 ITR 538 (SC)/[1996] 9 SCC 534. A table representing the prescription under the old and new regime is set out below: Regime Time Limits Specified Authority Section 151(2) of the old regime Bef....
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....r or Chief Commissioner or Principal Commissioner or Commissioner. 75. After 1 April 2021, the new regime has specified different authorities for granting sanctions under section 151. The new regime is beneficial to the assessee because it specifies a higher level of authority for the grant of sanctions in comparison to the old regime. Therefore, in terms of Ashish Agarwal (supra), after 1 April 2021, the prior approval must be obtained from the appropriate authorities specified under section 151 of the new regime. The effect of Section 151 of the new regime is thus: (i) If income escaping assessment is less than Rupees fifty lakhs: (a) a reassessment notice could be issued within three years after obtaining the p....
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....culties that arose during the COVID-19 pandemic. Section 3(1) of TOLA relaxes the time limit for compliance with actions that fall for completion from 20th March 2020 to 31st March 2021. TOLA will accordingly extend the time limit for the grant of sanction by the authority specified under section 151. The test to determine whether TOLA will apply to Section 151 of the new regime is this: if the time limit of three years from the end of an assessment year falls between 20th March 2020 and 31st March 2021, then the specified authority under section 151(i) has an extended time till 30th June 2021 to grant approval. In the case of Section 151 of the old regime, the test is: if the time limit of four years from the end of an assessment year fall....
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....tice. 80. In Ashish Agarwal (supra), this Court directed that Section 148 notices which were challenged before various High Courts shall be deemed to have been issued under section 148-A of the Income-tax Act as substituted by the Finance Act, 2021 and construed or treated to be showcause notices in terms of Section 148A(b). Further, this Court dispensed with the requirement of conducting any enquiry with the prior approval of the specified authority under section 148A(a). Under Section 148A(b), an assessing officer was required to obtain prior approval from the specified authority before issuing a show cause notice. When this Court deemed the Section 148 notices under the old regime as Section 148A(b) notices under the new regime,....