Loading judgment…
Facts
The revenue's appeal and the assessee's cross-objection were filed against the order of the NFAC, Delhi, pertaining to AY 2018-19. The revenue argued that the CIT(A) erred in deleting an addition and not verifying information. The assessee challenged the validity of the notice u/s 148.
Held
The Tribunal held that the notice u/s 148 of the Act was issued beyond three years and the sanctioning authority should have been the PCCIT, not the PCIT as per Section 151 of the Act. Following the High Court's decision, the sanction was deemed invalid.
Key Issues
Whether the notice issued u/s 148 of the Act for AY 2018-19 was valid when issued after the lapse of three years and with the incorrect sanctioning authority.
Sections Cited
148, 147, 148A, 151
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, “F” BENCH, MUMBAI
Before: SHRI SAKTIJIT DEY, HON’BLE & SHRI NARENDRA KUMAR BILLAIYA, HON’BLE
Assessee by : Shri Shriram Bajaj, A/R Revenue by : Ms. Kavitha Kaushik, Sr. D/R सुनवाई की तारीख/Date of Hearing : 13/10/2025 घोषणा की तारीख /Date of Pronouncement : 16/10/2025 आदेश/O R D E R
PER NARENDRA KUMAR BILLAIYA, AM:
This appeal by the revenue and cross-objection by the assessee are preferred against the order dated 29/05/2025 by NFAC, Delhi [hereinafter ‘the ld. CIT(A)’], pertaining to AY 2018-19.
The sum and substance of the grievance of the revenue is that the ld. CIT(A) erred in deleting the addition made by the AO by holding that the AO has not taken any efforts to independently verify the C.O. No. 245/Mum/2025 2 impugned information based on which the case was reopened and the addition was made and further erred in holding that the AO has failed to bring any evidence with regard to the nature of information. 2.1. In its cross-objection, the assessee has challenged the validity of the notice dated 05/04/2022 u/s 148 of the Act claiming the same to be invalid and bad in law inasmuch as the same was issued with prior approval of the ld. PCIT, Thane -1 instead of PCCIT as per the mandate of Section 151 of the Act. 2.1. Since the cross-objection raised by the assessee goes to the root of the matter, we adjudicate it first. 3. Vide notice dated 03/04/2022 issued u/s 148 of the Act, the AO proposed to assess/re-assess the income of the assessee. The notice read as under:-