DCIT CIRCLE 19(1) MUMBAI, MUMBAI vs. OVERSEAS EXPORTS , MUMBAI

Coming to the Department's appeal in ITA No. 3309/Mum/2026, we observe that the assessment in the instant case was admittedly reopened after the expiry of three years from the end of the relevant assessment year by issuance of notice under section 148 of the Act dated 29.07.2022. It is an admitted position that the prior approval for issuance of the said notice was obtained from the Principal Commissioner of Income Tax-19, Mumbai, and not from the Principal Chief Commissioner of Income Tax or any other specified authority, as contemplated under section 151(ii) of the Act, as applicable to the case in hand. Thus, the mandatory statutory requirement prescribed under section 151(ii) of the Act stood violated, rendering the notice issued under section 148 and the consequential reassessment proceedings unsustainable in law.

We further observe that the Ld. Commissioner, by following the ratio laid down by the Hon'ble Supreme Court in Union of India vs. Rajeev Bansal[(2024) 469 ITR 46 (SC)], has rightly quashed the reassessment proceedings along with the notice issued under section 148 of the Act by allowing the relevant ground raised by the Assessee.

We further find that the Ld. Commissioner has passed a well-reasoned order after duly considering the relevant statutory provisions as well as the dictum laid down by the Hon'ble Supreme

Thus, the appeal filed by the Revenue stands dismissed.

Coming to the Cross Objection filed by the Assessee, we observe that the Assessee has raised two grounds of objection. However, since we have upheld the order of the Ld. Commissioner quashing the reassessment proceedings along with the notice issued under section 148 of the Act, the Cross Objection filed by the Assessee has become infructuous and does not call for any separate adjudication.

In the result, the appeal filed by the Revenue is dismissed and the Cross Objection filed by the Assessee is dismissed as infructuous.