TaxTMI 
TaxTMI 
2026 (9) TMI 1860
X X X X Extracts X X X X
X X X X Extracts X X X X
....ned reassessment order dated 29.12.2017 passed u/s 143(3) read with Section 147 of the Act that in the case of the assessee for the reassessment year 2010-11 is without jurisdiction, illegal, invalid and bad in law. The reassessment proceedings were wrongly initiated vide notice dated 29.03.2017 u/s 148 even prior to the receipt of the proforma form on 30.03.2017 containing the mandatory approval of the sanctioning authority i.e. the Principal Commissioner of Income Tax, Central-2, Kolkata as required to be obtained u/s 151 of the Act." 4. After hearing the rival contentions and perusing the material on record, we find that the assessee has raised an additional ground of appeal challenging the jurisdiction of the AO to issue notice u/s 148 of the Act and to frame assessment. In our opinion the issued raised in the additional ground is a purely a legal issue qua which all the facts are available in the appeal folder and no further verification of facts is required from any quarter whatsoever. In our considered view the assessee is at liberty to raise any legal issue before any appellate authority for the first time even when the same has not been raised before the lower authoriti....
X X X X Extracts X X X X
X X X X Extracts X X X X
.....03.2017. We note from the Sr. No. 13 of the said proposal/approval that PCIT signed the notice without mentioning any date in the approval granted u/s 151 of the Act. For the ready reference, the same is extracted below: 7. The same was communicated to the AO vide letter dated 28.03.2017 however, the same was received by the office of AO on 30.03.2017 as is apparent from the said communication. For the sake of ready reference same is extracted below: 8. On the perusal of the above, we find that certainly the approval granted u/s 151 of the Act was conveyed to the DCIT, Central Circle 3(4), Kolkata on 30.03.2017 whereas the notice u/s 148 of the Act was issued on 29.03.2017 meaning thereby that notice was issued even prior to the communication of approval granted by the Ld. PCIT u/s 151 of the Act. In our considered opinion, the issuance of notice u/s 148 of the Act even prior to the communication of approval u/s 151 of the Act is serious lapse which goes to the root of the matter and renders the notice issued u/s 148 of the Act ss null and void in the eyes of law and so is the assessment framed consequently. The case of the assessee finds support from the decision of the Par....
X X X X Extracts X X X X
X X X X Extracts X X X X
....48 of the Act is invalid as the same was issued even prior to the communication of approval u/s 151 of the Act to the ld. AO thereby rendering all the consequential proceedings including the assessment framed to be nullity and invalid in the eyes of law. Therefore, we are inclined to quash the reopening of assessment and the consequent order passed by the ld. Assessing Officer. The case of the assessee find support from the decision of the Hon'ble Apex Court in the case of Sethi Auto Service Station and Anr. Vs. Delhi Development Authority and Ors. 2008 (10) TMI 659 (SC), wherein the Supreme Court has held as under: - "12. It is trite to state that notings in a departmental file do not have the sanction of law to be an effective order. A noting by an officer is an expression of his viewpoint on the subject. It is no more than an opinion by an officer for internal use and consideration of the other officials of the department and for the benefit of the final decision-making authority. Needless to add that internal notings are not meant for outside exposure. Notings in the file culminate into an executable order, affecting the rights of the parties, only when it reaches ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....owed. 10. Since we have quashed the notice u/s 148 as well as the assessment framed, the other grounds as raised in the memorandum of appeal are not being adjudicated at this stage. 11. In the result, the appeal of the assessee is allowed. Order is pronounced in the open court on 23^rd June, 2026. ============= Document 1 Form for recording the reasons for initiation proceedings under section 148 and for obtaining the approva of the Pr. Commissioner of Income Tax/Central Board of Direct Taxes 1 Name and address if the assessee M/s Arya Commotrade Pvt. Ltd. 22/1, Ground Floor, Alipore Road, Kolkata- 700027. [email protected] 2 Permanent Account Number AAHCA5816G 3 Status Company 4 District/Circle/Range : CC-3(4), Kolkata 5 Assessment Year in respect of which it is proposed to issue notice u/s 148 2010-11 6 The quantum of income which has escaped assessment Rs. 2,82,00,000/- ( As per Annexure - A ) 7 Whether the provisions of section 147(a) or 147(b) are applicable or both the sections are applicable Section 147 read with expln. 2(b) 8 Whether the assessment proposed to be made for first time? If the reply is affirmative, please state: (i) Whether any vo....
X X X X Extracts X X X X
X X X X Extracts X X X X
....) Aayakar Bhawan Poorva 110, Shanti Pally, Kol-700107, महोदय/Sir, Sub : Proposal for initiation of proceedings u/s 147 in the case of M/s Arya Commotrade Pvt. Ltd for A.Y 2010-11 (PAN- AAHCA5816G) - matter reg. Ref : Addl. C.I.T.(C)/Central R-3/Kol/ u/s.147/2016-17/1793 dated 28/03/2017 Please refer to the above. I am directed to forward herewith the documents along with the following comment of Pr .. C.I.T (C), Kol .- 2 as under, "For the reasons recorded by the A.O I am satisfied for proposed action u/s 147/148 of the I.T Act. Hence the proposal action is approved." One filled up form for recording reasons for initiation of proceedings u/s 147 in original of M/s Arya Commotrade Pvt. Ltd for A. Y 2010-11 (PAN-AABCJ1915H) is sent back. This is for your kind perusal and necessary action. Enclo; As above No.CIT(C)Kol-2/kol//Audit/2016-17/ Copy for information to : Addl.CIT (C)-Range 3 TRUE CODY Yours faithfully, (Ujjwal Mandal) ACIT, Hors.Central.Kol,-2 For Pr.CIT(Central), Kolkata -2 दिनांक : 28/03/2017 s/d (Ujjwal Mandal) ACIT. Hqrs.Central, Kol ;- 2 For Pr.CIT(Central....