TaxTMI 
TaxTMI 
2025 (3) TMI 2158
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....e of NTPC Vs. CIT, 229 ITR 383 and also considering the fact that this ground goes to the roots of the case, therefore allow the assessee to raise the additional ground. Consequently the application filed by the assessee is allowed and this additional ground is admitted for adjudication on merits. 4. Since, we have admitted the additional ground which goes to the roots of the case therefore we have decided to adjudicate the same. The assessee has raised the additional ground of appeal: 1. The notice u/s 148 of the Act is bad in law as the condition u/s 147 to 151A of the Act are not fulfilled and therefore, the reassessment proceedings are bad in law. 5. Ld. AR appearing on behalf of the assessee submitted that the notice u/s 148 of the Act dated 24.07.2022 issued by the department to the assessee is bad in law as the conditions u/s 147 to 151(A) of the Act are not fulfilled. Therefore it was submitted that the reassessment proceedings may be declared as bad in law. In this regard Ld. AR relied upon the decision of Coordinate Bench of ITAT in ITA No. 3551/Mum/2024 in the case of ACIT Vs. Ramchand Thakurdas Jhamtani . 6. On the other hand, Ld.DR relied upon the ord....
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....but within six years after obtaining the approval of the Principal Chief Commissioner 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 prior approval of the Principal Commissioner, or Principal Director or Commissioner or Director; and (b) no notice could be issued after the expiry of three years; and (ii) If income escaping assessment is more than Rupees fifty lakhs: (a) a reassessment notice could be issued within three years after obtaining the prior approval of the Principal Commissioner, or Principal Director ....
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....f the new regime can grant sanction till 30 June 2021. 79. Under Finance Act 2021, the assessing officer was required to obtain prior approval or sanction of the specified authorities at four stages: a. Section 148A(a) - to conduct any enquiry, if required, with respect to the information which suggests that the income chargeable to tax has escaped assessment; b. Section 148A(b) - to provide an opportunity of hearing to the assessee by serving upon them a show cause notice as to why a notice under section 148 should not be issued based on the information that suggests that income chargeable to tax has escaped assessment. It must be noted that this requirement has been deleted by the Finance Act 2022; c. Section 148A(d) - to pass an order deciding whether or not it is a fit case for issuing a notice under section 148; and d. Section 148 - to issue a reassessment notice; 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 148A of the Income-tax Act as substituted by the Finance Act, 2021 and construed or trea....
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.... prior approval under section 148A(a) and Section 148A(b) of the Act only. Therefore, the Assessing Officer was required to obtain prior approval of the 'Specified Authority' according to Section 151 of the new regime before passing an order under Section 148A(d) or issuing a notice under Section 148. (b) Under new regime if income escaping assessment is more than Rupees 50 lakhs a reassessment notice could be issued after expiry of three years from the end of the relevant previous year only after obtaining the prior approval of the Principal Chief Commissioner or Principal Director General or Chief Commissioner or Director General. (c) 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. (d) Section 151(ii) of the new regime prescribes a higher level of authority if more than three years have elapsed from the end of the relevant assessment year. Thus, non-compliance by the assessing officer wi....