Aparna Kapur vs ITO, Ward-49(1)

PER VIKAS AWASTHY, JUDICIAL MEMBER:

This appeal by the assessee is directed against the order of Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi [in short ‘the CIT(A)’] dated 14.01.2026, for Assessment Year 2017-18.

The assessee by way of ground no. 2 of appeal has challenged validity of notice u/s.148 of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) in the absence of approval from Competent Authority under section 151 of the Act.

Shri Vinod Kumar Garg, appearing on behalf of the assessee submits that the assessment for AY 2017-18 has been reopened beyond the period of three years, therefore, necessary approval u/s.151 of the Act for issuing notice u/s.148 of the Act was required to be obtained from the Principal Chief Commissioner or Chief Commissioner of Income Tax. Whereas, in the present case the Assessing Officer (AO) has taken approval from PCIT. This fact clearly emanates from the order passed u/s. 148A(d) of the Act (at pages 35 to 39 of the paper book), as well as, from the notice issued u/s.148 of the Act (at page 40 of the paper book).

Shri Manoj Kumar, representing the Department strongly supported the impugned order on merits.

Both sides heard, notices issued u/s.148 of the Act and order passed u/s.148A(d) of the Act placed in the paper book examined. The assessee has challenged validity of notice issued u/s.148 of the Act as the same has issued without seeking approval from the Competent Authority. As per provisions of section 151 of the Act (as were applicable when the aforesaid notices were issued), before issuing notices u/s.148 and u/s.148A of the Act, the AO is required to obtain necessary approval from PCCIT/CCIT, if, more than three years have elapsed from the end of relevant assessment year. In the instant case, assessment for AY 2017-18 was reopened by way of issuance of notice u/s.148 of the Act dated 31.07.2022, which is clearly beyond the period of three years. A perusal of order u/s.148A(d) of the Act dated 30.07.2022 shows that the statutory notice has been issued after obtaining prior approval of PCIT. Thus, the notice u/s.148 of the Act has been issued in violation of provision of section 151 of the Act, hence, non-est. Since, the notice u/s.148 of the Act is invalid, the assessment proceedings emanating from such notice are without jurisdiction, hence, quashed

In the result, appeal of the assessee is allowed.