2026 (5) TMI 661

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....year 2017- 18. 2. At the outset, it may be noted that the assessee has assailed the impugned reassessment proceedings on twin grounds. Firstly, on a pure question of jurisdiction, the assessee has challenged the very validity of initiation of reassessment proceedings on the ground that the mandatory approval contemplated under section 151 of the Act has not been accorded by the competent authority as prescribed under law. Secondly, on merits, the assessee has disputed the addition of Rs.89,00,000/- made on account of cash deposits during the demonetisation period. 3. Before adverting to the merits of the addition, we deem it appropriate, as a matter of judicial propriety and settled legal discipline, to first examine the jurisdictiona....

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....ty competent to grant approval is the Principal Chief Commissioner or the Principal Director General or the Chief Commissioner or the Director General, as the case may be. 7. In the present case, however, the approval has admittedly been granted by the Principal Commissioner of Income Tax. This, in our considered opinion, strikes at the very root of jurisdiction and is not a mere procedural irregularity curable under law. 8. This precise issue now stands squarely covered by the decision of the Hon'ble Bombay High Court in Chitra Supekar vs. NFAC in Writ Petition No. 15580 of 2022. The relevant observations of the Hon'ble High Court, which have a direct and binding bearing on the issue before us, read as under: "Apropos s....