TaxTMI 
TaxTMI 
2026 (7) TMI 1151
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....itional ground was filed challenging the very validity of the assessment order passed u/s 147 r.w.s. 144 of the Act, as it was passed without the approval of the appropriate authority. Ld. Counsel for the assessee submitted that since the ground challenging the very validity of the assessment is in question, is purely a legal ground requested that the additional ground be admitted for adjudication. Reliance was placed on the decision of the Hon'ble Supreme Court in the case of National Thermal Power Co. Ltd. vs. CIT reported in 229 ITR 383 (SC) and the decision of the Hon'ble Bombay High Court in the case of CIT vs. Western Rolling Mill Pvt. Ltd., reported in 156 ITR 54 (Bom.). 4. Heard rival contentions and perused the orders of the authorities below. The assessee has raised the following additional grounds challenging the very validity of the reassessment order passed u/s 147 r.w.s. 144 of the Act. "1. On the facts and circumstances of the case and law, the Ld. CIT(A) erred in confirming reopening of assessment u/s 147 of Income Tax Act,1961 which is badin- law and required to be quashed 2. On the facts and circumstances of the case and law, the Ld. CIT(A) er....
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....roval was the Principal Chief Commissioner of Income Tax. However, the approval was obtained from the Principal Commissioner of Income Tax for the issue of notice, which is bad in law. Reliance was placed on the decision of the Hon'ble Bombay High Court in Alag Property Construction (P.) Ltd. vs ACIT, reported in (2025) 179 taxmann.com 578 (Bom.). Reliance was also placed on the decision of the Coordinate Bench in the case of Narendra Khimji Savla vs. ITO in ITA No. 8720/Mum/2025 dated 09.03.2026 and ITO vs. Himanshu Sarda in ITA No. 5862/Mum/2025 and CO No. 410/Mum/2025 dated 05.02.2026. 7. Heard rival contentions and perused the orders of the authorities below. Undisputedly, the assessment for A.Y. 2017-18 was reopened beyond the period of three years from the end of the relevant assessment year by issue of notice u/s 148 of the Act dated 30.06.2021, and an order u/s 148A(d) was passed on 29.07.2022. Perusal of the order passed u/s 148A(d) shows that the approval was granted by the Principal Commissioner of Income Tax -20, Mumbai, for reopening the assessment. 8. The Hon'ble Bombay High Court in the case of Alag Property Construction (P.) Ltd. vs ACIT, reported in (2025) 17....
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.... Regime Time limits Specified authority Section 151(2) of the old regime Before expiry of four years from the end of the relevant assessment year Joint Commissioner Section 151(1) of the old regime After expiry of four years from the end of the relevant assessment year Principal Chief Commissioner or Chief Commissioner or Principal Commissioner or Commissioner Section 151(i) of the new regime Three years or less than three years from the end of the relevant assessment year Principal Commissioner or Principal Director or Commissioner or Director Section 151(ii) of the new regime More than three years have elapsed from the end of the relevant assessment year Principal Chief Commissioner or Principal Director General or Chief Commissioner or Director General 74. The above table indicates that the specified authority is directly co-related to the time when the notice is issued. This plays out as follows under the old regime: (i) If income escaping assessment was less than rupees one lakh: (a) a reassessment notice could be issued under section 148 within four years after obtaining the approval of the Joint Commissioner; and (....
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.... time limits prescribed under section 151 affects their jurisdiction to issue a notice under section 148. 77. Parliament enacted Taxation and other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020 to ensure that the interests of the Revenue are not defeated because the Assessing Officer could not comply with the preconditions due to the difficulties that arose during the covid-19 pandemic. Section883(1) of the Taxation and other ne (Relaxation and Amendment of Certain Provisions) Act, 2020 relaxes the time limit for compliance with actions that fall for completion from March 20, 2020 to March 31, 2021. The Taxation and other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020 will accordingly extend the time limit for the grant of sanction by the authority specified under section 151. The test to determine whether Taxation and other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020 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 March 20, 2020 and March 31, 2021, then the specified authority under section 151(i) has an extended time till June 30, ....
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....r 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, it impliedly waived the requirement of obtaining prior approval from the specified authorities under section 151 for section 148A(b) notices. It is well established that this court while exercising its jurisdiction under article 142, is not bound by the procedural requirements of law. (High Court Bar Association, Allahabad v. State of Uttar Pradesh ((2024) 6 SC 267.J) 81. This court in Union of India v. Ashish Agarwal [[2022] 138 taxmann.com 64 (SC)(2022) 286 Taxman 183 (SC)[2022] 444 ITR 1 (SC); (2023) 1 SCC 617] directed the Assessing Officers to "pass orders in terms of section 148A(d) in respect of each of the assessee's concerned". Further, it directed the Assessing Officers to issue a notice under section 148 of the new regime after following the procedure as required under section 148A". Although this court waived off the requirement of obtaining ....
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....ondition 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 end of the A.Y. 2017-18 fell for completion on 31" March 2021. As the expiry date fell during the time period of 20th March 2020 and 31st March 2021, under Section 3(1) of the Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020 (for short "TOLA"), the authority specified under Section 151(i) of the new regime could have granted sanction only till 30th June 2021. 10. On perusal of the order dated 18.08.2022, passed under Section 148A(d) of the Act we find that the aforesaid order was passed after taking approval from Principal Commissioner of Income Tax (Respondent No.2). Since the aforesaid order was passed, as well as the notice under section 148 was issued, after the expiry of three years from the end of A.Y. 2017-18, as per the substituted provisions of re-assessment, the authority specified under Section 151(ii) of the Act (i.e. Principal Chief Commissioner or Chief Commissioner) was required to grant approval. Accordingly, we conclude that in the present case, appr....