2026 (8) TMI 1829

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....rein ld. CIT(A) has dismissed assessee's appeal. 2. Brief facts of the case: In this case, the AO had information from the investigation wing regarding payment of Rs. 3,90,600/- in cash in respect of purchase of an immovable property in Omaxe Eternity, Vrindavan. On the basis of this information, the AO reopened this case vide notice u/s 148 of the Act dated 10.04.2023 after taking the approval of PCIT-1, Agra vide approval dated 06.04.2023 (impugned 148 notice and the approval of the PCIT-1, Agra are placed at page no. 5 & 9 to 11 of the paper book respectively). The AO passed the assessment order on 20.03.2025 u/s 147 of the Act making an addition of Rs. 3,38,227/- u/s 69C of the Act treating the difference of the booking amount value ....

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....wed to submit his case on this additional ground also." 4. The above additional legal ground is purely legal in nature and is admitted in view of law laid down by Hon'ble Supreme Court in NTPC Ltd. v CIT (1998) 229 ITR 383 (SC). 5. We have heard both the parties and perused the material on record. At the very outset, we notice that the matter relates to A.Y. 2019-20 and the approval u/s 151 of the Act was taken on 06.04.2023 from the PCIT, Agra. We further notice that the escaped income in the column no. 7 of the approval proforma which is part of assessee's paper book on page no. 9 to 11 shows the escaped income as Rs. 3,90,600/-. In column no. 8 it is further mentioned that the approval is needed for order u/s 148(A)(d) and for issu....

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.....2023. According to the approval granted u/s 151, the sanctioning authority has mentioned that the approval is needed for issuance of order u/s 148A(d) required for the issuance of notices u/s 148. The income escaped is mentioned at Rs. 49,50,259/-. Time limit u/s 149(1)(b) relates to the escaped income amounting to Rs. 50,00,000/- or more and the sanctioning authority u/s 151(ii) was Pr. Chief Commissioner or Pr. Director General or Chief Commissioner or Director General, if more than 3 years have elapsed from the end of the relevant assessment year. It is, therefore, a case of non application of mind and the sanction granted u/s 151 is invalid sanction. Assessee has also referred order dated 01.08.2023 passed by Hon'ble Bombay High Court ....

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.... view thereof, we do not wish to delve into the other issue of want of digital signature raised by petitioner on the sanction order issued under Section 151 of the Act. That can be considered in an appropriate case." 10. The facts of the instant case are identical to that of facts of Kartik Sureshchandra Gandhi (supra) decided by Bombay high Court. Respectfully following the same we hold that the order u/s 148 dated 12.04.2023 issued in consequence of invalid sanction u/s 151 of the Act, is bad in law, we set aside and quash the assessment order dated 06.01.2025 passed in consequence thereof. The other issues remain academic in nature and, hence, are not being adjudicated and are left open. 11. In the result, the assessee'....