Rani Devi vs Income Tax Officer, Ward-36(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 (NFAC), Delhi (hereinafter referred to as 'the CIT(A)') dated 22.10.2025 for AY 2017-18.

The assessee in appeal has inter alia assailed validity of reopening of assessment.

Shri Saurav Rohtagi, appearing on behalf of the assessee submits that in the instant case, assessment has been reopened beyond the period of three years. The provisions of section 151 of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) mandates that where the assessment is reopened beyond the period of three years, approval of the Principal Chief Commissioner or Chief Commissioner of Income Tax is mandatory. In the present case, the assessment has been reopened and notice u/s 148 of the Act has been issued on 22.07.2022 i.e. after the elapse of three years from the end of the relevant assessment year, after seeking prior approval of the Principal Commissioner of Income Tax (PCIT). Thus, reopening of assessment is without jurisdiction. In support of his submissions, the ld. Counsel for the assessee placed reliance on the decision of Hon’ble Delhi High Court in the case of Bhagwan Sahai Sharma vs. DCIT, 305 Taxman 387 (Delhi).

Per contra, Shri Manoj Kumar representing the Department, strongly supported the impugned order. The ld. DR submits that the Assessing Officer (AO) has obtained approval from the Competent Authority before issuing notice u/s.148 of the Act, as per the provisions of section 151 of the Act.

We have heard the submissions made by rival sides and have examined the orders of the authorities below. Undisputedly, assessment in the case of assessee for A.Y. 2017-18 has been reopened beyond the period of three years from the end of the relevant assessment year. Notice u/s.148 of the Act was issued to the assessee on 22.07.2022 after obtaining prior approval of the PCIT. A copy of notice u/s.148 of the Act is at pages 35 & 36 of the paper book. The provisions of section 151 of the Act are unambiguous in so far as the specified authority from whom approval has to be obtained for the purpose of sections 148 and 148A of the Act is concerned. Where notice u/s 148 of the Act is issued after elapse of more than three years from the relevant assessment year, the AO was required to obtain approval from the PCCIT or CCIT. It is evident from the records that the AO has not taken prior approval from the competent authority in the present case, thus making the notice defective. Any proceedings arising from defective notice issued u/s 148 of the Act are non-est and are without jurisdiction. Thus, in light of the facts of case and the provisions of section 151 of the Act as they were applicable at the time when notice u/s 148 of the Act was issued, the reassessment proceedings are invalid, hence, quashed.

In the result, appeal of the assessee is allowed.