LEELA DEVI JAIN, DURG,DURG vs. ITO, WARD-1(1), BHILAI, BHILAI

In the Additional Ground of Appeal, the assessee has assailed as follows: “In the facts and circumstances of the case and in law, the assessment order passed on 31/03/2023 on the basis of notice u/s. 148 of the Income-tax Act, 1961 is illegal and non-est in so far as there is no valid approval of the authority specified u/s.151 of the Income Tax Act, 1961 for issuing notice ill s.148 as it was obtained from the Chief Commissioner of Income Tax, Raipur in place of Principal Chief Commissioner of Income Tax, MP & CG, Bhopal."

In this regard, both the Revenue as well as the assessee had filed respective response which have been carefully considered. Admittedly, there is Pr. Chief Commissioner of Income Tax, Madhya Pradesh & Chhattisgarh, Bhopal and as per the submissions of the Ld. Sr. DR, it seems that she confines or categorized to confine the role of Pr. Chief Commissioner of Income Tax solely to cadre control function. However, as per the CBDT Notification No.S.O.2813(E)[No.56/2014], dated 03.11.2014, the hierarchy of the Income Tax Authorities is explained where the Pr.

As per Section 151(ii) of the Income Tax Act, 1961 (for short ‘the Act’), the approval has to be given by the Pr. Chief Commissioner of Income Tax and if he is not there, then only the role of Chief Commissioner of Income Tax comes into play. However, the fact of the matter is herein that the office of the Pr. Chief Commissioner of Income Tax is present in the State of Madhya Pradesh and Chhattisgarh. This is the exact jurisdiction as enshrined by the Board for the purpose of Income Tax Act, and therefore, one cannot say there is no Pr. Chief Commissioner of Income Tax for Chhattisgarh since though seat of office of Pr. Chief Commissioner of Income Tax is in Madhya Pradesh, however, his jurisdiction extends also to the State of Chhattisgarh. The Ld. Sr. DR could not refute these facts. She only banked upon the clarification in the memorandum to the Finance Bill, 2026. However, these clarifications cannot supersede the dictate, the authority of the statute i.e. Section 151(ii) of the Act, hence, submissions of the Ld. Sr. DR are sans any merit.

The jurisdiction of the Chief Commissioner of Income Tax to grant approval u/s. 151 of the Act is expressly contingent upon the absence of the Pr. Chief Commissioner of Income Tax. In this case, the Pr. Chief

Rest all other grounds stands academic only.

That as per above terms, the appeal of the assessee is allowed.