TaxTMI 
TaxTMI 
2025 (12) TMI 1899
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....15 the returned income is Rs. 2,09,190/- The notice issued by the DY CIT Circle (1)(2)(1) Mumbai is without jurisdiction and hence reassessment made under section 147 rws 144 read with section 144B be cancelled. 2. The reassessment notice under section 148A(b) issued on 27/5/2022 by jurisdictional DY CIT Circle 1(2) Mumbai AO 1(2)(1) Mumbai and notice under section 148A (d) and notice under section 148 are issued by the Jurisdictional Assessing Officer circle 1(2)(1) Mumbai (i.e. DY CIT Circle 1(2) (1) Mr. H.S. Kelkar Saheb) As per section 151A of IT Act, 1961 as well as per CBDT instruction dated 29.3.2022 such reassessment notices are required to be issued by Faceless Assessing Officer under the scheme framed by the CBDT and not by Jurisdictional Assessing officer. 2.1 The re-assessment proceeding initiated and consequential reassessment proceeding initiated and consequential reassessment order passed u/s. 147 rws 1448 & 144 is invalid and be cancelled. 2.2 The above view is confirmed by the Jurisdictional High Court in case of Hexaware Technologies Ltd. v/s. ACIT (2024) 464 ITR 430 Bombay HC. The reassessment initiated u/s. 148A(b) 14....
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....foresaid requirement, the approval in the present case has been obtained from the Principal Commissioner of Income Tax-2, Mumbai [vide Reference No.Pr.CIT-2/Approval/u/s148A(d)/2022-23, dated 19/07/2022]. Accordingly, since proper sanction by the specified authority has not been obtained for issue of notice under Section 148 of the Act, such notice is invalid and bad in law. In this regard, reliance was placed by the Learned Authorized Representative for the Assessee on the judgment passed by the Hon'ble Bombay High Court in the case of Ramesh Bachulal Mehta Vs. Income Tax Officer in Writ Petition No.271 of 2023, dated August 11, 2025 [2025] 177 taxmann.com 606 (Bombay) and in the case of Prakash Pandurang Patil Vs. Income Tax Officer in Writ Petition No.10749 of 2024, dated August 12, 2024 [2025] 177 taxmann.com 552 (Bombay). 4. Per contra Learned Departmental Representative supported the order passed by the Assessing Officer and vehemently contended that approval/sanction under Section 151 of the Act is valid. 5. We have heard both the sides and have perused the material on record in relation to this issue. We have also taken into consideration the judicial precedents c....
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....e 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 or Commissioner or Director; and (b) after three years after obtaining the prior approval of the Principal Chief Commissioner or Principal Director General or Chief Commissioner or Director General. 76. Grant of sanction by the appropriate authority is a precondition for the assessing officer to assume jurisdiction under section 148 to issue a reassessment notice. Section 151 of the new regime does not prescribe a time limit within which a specified authority has to grant sanction. Rather, it links up the time limits with the jurisdiction of the authority to grant sanction. 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 with the strict time limits prescribed under section 151 affects their jurisdiction to issue a notice under section 148. 77. Parliament....
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....0. 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 148-A of the Income-tax Act as substituted by the Finance Act, 2021 and construed or treated to be show-cause notices in terms of Section 148-A(b)." Further, this Court dispensed with the requirement of conducting any enquiry with the prior 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). 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 v. State of U P [2024] 160 taxmann.com 32/299 Taxman 21 (SC)/[2024] 6 SCC 267. 81. This Court in Ashish Agarwal (supra) directed the assessing officers to "p....
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....der 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 with the strict time limits prescribed under section 151 affects their jurisdiction to issue a notice under section 148 (e) Grant of sanction by the appropriate authority is a precondition for the assessing officer to assume jurisdiction under section 148 to issue a reassessment notice. 9. In the present case the period of 3 years from the end of the Assessment Year 2016-2017 fell for completion on 31/03/2020. The expiry date fell with the period of 20th March 2020 to 31st March 2021 contemplated under Section 3(1) of Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020 [for short 'TOLA']. Resultantly, the authority specified under Section 151(i) of the new regime could have granted sanction till 30th June 2021. It is admitted position that in the present case order under Section 148A(d) and the notice under Section 148 of the Act were issued ....
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....sment is more than Rupees 50 lakhs, a reassessment notice could be issued after the expiry of three years from the end of the relevant assessment year only after obtaining the prior approval of the Principal Chief Commissioner or Principal Director General or Chief Commissioner or Director General. 8.3 Section 151(ii) of the substituted provisions prescribes a higher level of authority if more than three years have elapsed from the end of the relevant assessment year. Thus, non-compliance with the provisions of section 151 vitiates the jurisdiction of the Assessing Officer to issue a notice under section 148. 8.4 Grant of sanction by the appropriate authority is a precondition 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 Assessment Year 2016-17 fell for completion on 31st March 2020. Since the expiry date fell during the time period of 20th March 2020 and 31st March 2021 contemplated under Section 3(1) of Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020 (for short "TOLA"), the authority specified unde....