TaxTMI 
TaxTMI 
2026 (8) TMI 35
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....tion of Rs. 54,60,000/- u/s. 68 of the Act made by the AO vide assessment order dated 22.05.2023 was deleted. 2. The facts in brief as culled out from para 2 of the impugned order are as under: "2. The brief facts of the case are that the appellant filed its return of income for the year under consideration on 16.08.2016 declaring total income of NIL. Subsequently, as per the information available with the department, search and survey action under sections 132 and 133A of the Income Tax Act, 1961 was carried out on 08.03.2017 at the residential and office premises of Shri Puneet Kulthia, C.A., located at 54, Model Town, North- Ex., Delhi-110009 and at No. 7, Model Town, North-Ex., Basement Floor, New Delhi-110009 respectively. ....
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....the fact that Mr. Puneet Kulthia, CA in his statement recorded on oath u/s. 131(1A) of the Income Tax Act, 1961 clearly admitted that the alleged accommodation entries were provided by him and his associates to the several entities including the assessee." 4. The assessee has raised following grounds of cross objection in CO No. 116/Del/2026: "1 That the learned Commissioner of Income Tax (Appeals) has erred both in law and on facts in upholding the initiation of proceedings under section 147 of the Act and, completion of assessment under section 147/144B of the Act without appreciating that the same were without jurisdiction and hence deserved to be quashed as such. 1.1 That the learned Commissioner of Income Tax (Appe....
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....ion and therefore deserves to be quashed as such. 1.5 That the learned Commissioner of Income Tax (Appeals) has failed to appreciate that order dated 13.7.2022 u/s. 148A(d) of the Act and, notice dated 13.7.2022 u/s. 148 of the Act issued without validly complying section 151 of the Act were also without jurisdiction. 2 That the learned Commissioner of Income Tax (Appeals) has failed to appreciate that since Document Identification Number ("DIN") is absence in notice dated 13.7.2022 u/s. 148 of the Act and therefore the proceedings initiated u/s. 147 of the Act was invalid and assumption of jurisdiction u/s. 147/143(3) of the Act was without jurisdiction and consequently order of assessment dated 22.5.2023 u/s. 147/144B of....
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....p; ii) Notice issued u/s. 148 of the Act 19.4.2021 Range-25, Delhi iii) Notice issued u/s. 148A(b) of the Act in terms of direction by Hon'ble Supreme Court in case of UOI v. Ashish Agarwal 25.5.2022 iv) Notice u/s. 148A(d) of the Act 13.7.2022 Principal Commissioner of Income Tax-7, New Delhi v) Notice u/s. 148 of the Act 13.7.2022 6. It is submitted that in view of the provisions of section 151 of the Act, the approval was required to be granted from the Ld. Principal Chief Commissioner or Ld. Principal Director General or Chief Commissioner or Director General, where there is no Ld. Principal Chief Commissioner or Ld. Principal Director General. However, in the instant case, a....
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....nsal (supra) wherein it has been laid down as under: "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 assesses 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 Before expiry of four years from the end of t....
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....5. 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 ....