SHANKAR RAJARAM NEELAM,MUMBAI vs. ITO 19(3)(1), MUMBAI

आदेश / ORDER

PER : NARENDER KUMAR CHOUDHRY, JM

This appeal has been preferred by the Assessee against the order dated 25.11.2025, impugned herein, passed by Ld. Commissioner of Income Tax (Appeals) (in short Ld. Commissioner) u/s 250 of the Income Tax Act, 1961 (in short ‘the Act’) for the A.Y. 2016-17.

“10. In the present case, the period of three years from the end of the A.Y.2016-17 read with TOLA, fell for completion on 30.06.2021. The authority specified under Section 151(i) of the new regime could have granted sanction only till 30th June 2021. However, on perusal of the Notice dated 30.07.2022 issued under Section 148 of the Act, we find that the aforesaid Notice was issued after taking approval from the Principal Commissioner of Income-tax2, Mumbai (i.e. Respondent No.2). Since the aforesaid Notice was issued after the expiry of three years from the end of the A.Y.2016-17, as per the substituted provisions of re-assessment, the authority specified under Section 151(ii) of the Act i.e. the Principal Chief Commissioner (PCCIT) or Principal Director General (PDGIT), or where there is no PCCIT or PDGIT, the Chief Commissioner (CCIT) or the Director General (DGIT), was required to grant approval. Accordingly, we conclude that in the present case, the approval has been obtained from the authority specified under Section 151(i) of the new regime instead of the authority specified under Section 151(ii) of the new regime. Non-compliance by Respondent No.1 with the provisions contained in Section 151(ii) vitiates the jurisdiction of Respondent No.1 to issue a notice under Section 148 of the Act. 11. We are clearly of the view that the present matter stands covered by the decision of Hon'ble Supreme Court in the case of UOI V/S Rajeev Bansal (supra) and decision of this Court in the case of Ramesh Bachulal Mehta (supra). We accordingly hold that the order dated 30.07.2022 passed under Section 148A(d) of the Act and the consequential notice issued under Section 148 dated 30.07.2022, are bad in law for being violative of the provisions of Section 151(ii) of the Act. Hence, they are required to be quashed and set aside. Accordingly, the consequential reassessment order dated 30.10.2025 passed under Section 147 of the Act and issuance of penalty Notice dated 07.11.2025 under Section 274 read with Section 271(1)(c) of the Act are also quashed and set aside. 12. In view of the foregoing discussion, we set aside the impugned notices and orders, and all proceedings emanating therefrom and allow the present Writ Petition in terms of prayer clause (a), which is reproduced hereunder:- "(a) that this Hon'ble Court may be pleased to issue a writ of certiorari or a writ in the nature of certiorari or any other appropriate writ, order or direction under Article 226 of the Constitution of India calling for the records of the case relating to the initiation of the passing of the impugned order dated 30th July 2022 u/s. 1484(d) of the Act leading upto to the conclusion of the impugned re-assessment proceedings and after going through the same and examining the question of legality thereof to quash, cancel and set aside the order u/s. 1484(d) of the Act dated 30th July 2022 (Ex. 'K'), the notice issued u/s. 148 of the Act dated 30 July 2022 for A.Y. 2016-17 (Ex. L'), the re-assessment order dated 30th October 2025 passed u/s. 147 of the Act (Ex. 'Z'), the notice of demand dated 30th October 2025 issued u/s. 156 of the Act (Ex. 'AA') and the notice for levy of penalty dated 07th November 2025 issued u/s. 274 r.w.s. 271(1)(c) of the Act (Ex. 'BB');"

Order pronounced in the open court on 30.04.2026.

Sd/- Sd/- (ARUN KHODPIA) (NARENDER KUMAR CHOUDHRY) ACCOUNTANT MEMBER JUDICIAL MEMBER

(Tarun Kushwaha) Sr. Private Secretary Copy to: SHANKAR RAJARAM NEELAM, GROUND FLOOR, SHOP NO. 12, 160 A BANKER BUILDING, ALI BHAI PREMJI 1 MARG, GRANT ROAD, MUMBAI 400 007, MUMBAI-400007, MAHARASHTRA ITO 19(3)(1), ROOM NO. 405, PIRAMAL CHAMBERS, 2 LALBAUG, MUMBAI 400 012, MUMBAI- 400012, MAHARASHTRA 3 THE PCIT / CIT, 4 THE D.R., ITAT, MUMBAI BENCH 5 GUARD FILE