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Facts
The assessee's appeal arises from an order of the CIT(A)/NFAC concerning proceedings under Section 147 of the Income-tax Act for AY 2016-17. The primary issue is the validity of the reopening of assessment.
Held
The Tribunal held that the approval for reopening was obtained from an incorrect authority, violating Section 151(ii) of the Act, as it applied to cases where more than three years had elapsed since the end of the relevant assessment year. Consequently, the Revenue's contentions supporting the reopening were rejected.
Key Issues
Validity of the reopening of assessment under Section 147 due to improper approval obtained from the Commissioner as per Section 151(ii).
Sections Cited
147, 151, 151(i), 151(ii)
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Income Tax Appellate Tribunal, DELHI BENCH ‘SMC’ NEW DELHI
Before: SHRI SATBEER SINGH GODARA
O R D E R
PER SATBEER SINGH GODARA, JM:
This assessee’s appeal 2016-17 arises against CIT(A)/ NFAC, Delhi’s order dated 27.05.2025 (DIN & Order No. ITBA/APL/S/250/2025-26/1076477012(1), in proceedings u/s 147 of the Income-tax Act, 1961, hereinafter referred to as the ‘Act’.
Heard both the parties. Case file perused.
It emerges at the outset that first and foremost issue that arises for adjudication is validity of the impugned reopening itself as the learned assessing authority had obtained approval dated 28.07.2022 from Principal Commissioner of Income Tax-01, Delhi u/s 151(i) instead of the prescribed authority under sub Union of India vs. Rajeev Bansal (2024) taxmann.com 70 (SC). It is made clear that the above section 151(ii) applies in a case if time period more than three years from the end of the relevant assessment year elapses as are the facts herein.
That being the case, I hereby reject Revenue’s vehement contentions supporting the impugned reopening u/s 147. The assessee succeeds in its instant first and foremost legal ground/ argument in very terms.
All other grounds on merit stand rendered academic.
Order pronounced in open court on 20.08.2025