NIRAJ SARJU MANDAL ,MUMBAI vs. DEPUTY COMMISSIONER OF INCOME TAX CENTRAL CIRCLE 41(3)(1), MUMBAI

IN THE INCOME TAX APPELLATE TRIBUNAL
“SMC” BENCH, MUMBAI
BEFORE SHRI PAWAN SINGH, JUDICIAL MEMBER
(Physical hearing)
Niraj Sarju Mandal
B-503, Sankalp 2, Goregaon Link Road,
Pimpripada, Malad, Mumbai-400097. [PAN No. AHUPM1815G]

Vs
DCIT Central Circle-41(3)(1),
KautilyaBhavan, BandraKurla
Complex, Bandra (East),
Mumbai – 400051. Appellant / Assessee

Respondent / Revenue

Assessee by Sh. Devendra Jain, CA
Revenue by Sh. Surendra Mohan, Sr. DR
Date of Institution
01.04.2025
Date of hearing
15.07.2025
Date of pronouncement
01.08.2025

Order under section 254(1) of Income Tax Act

PER PAWAN SINGH, JUDICIAL MEMBER; 1. This appeal by assessee is directed against the order of Ld. CIT(A)/NFAC dated 20.02.2025 for assessment year (AY) 2016-17. 2. Rival submissions of both the parties have heard and record perused. The learned Authorised Representative (ld. AR) of the assessee submits that though, the assessee has raised multiple grounds of appeal, however, at this stage the assessee pressing against validity of reopening under section 147 and issuance of notice under section148. Once, such issue is held in favour of assessee, other legal issue and grounds of appeal on merit will become academic. The case of assessee for A.Y. 2016-17 was reopened by issuing notice under section 148 dated 30.06.2022. The case of assessee was reopened beyond three years from the end of relevant assessment year. As per amended provision of section 147/148, inserted by Finance Act 2021, applicable from 01.04.2021, the assessing officer was required to obtain Niraj Sarju Mandal 2

sanction/approval under section 151(ii) from Principal Chief Commissioner or Principal Director General or Chief Commissioner or Director General. However, in the present case, the assessing officer obtained approval of Pr.
Commissioner of Income Tax as recorded in the notice under section 148
dated 30.06.222 itself. Thus, notice under section 148 is issued without proper sanction which renders the notice invalid; therefore, subsequent action initiated on such invalid has become void ab initio. To support his submission, the ld AR of the assessee relied on the decision of Mumbai Tribunal in ACIT Vs
Manish Financial in ITA No. 5050/Mum/2024 dated 02.12.2024. 3. On the other hand, learned Senior Departmental Representative (ld. Sr. DR) for the revenue after going through the contents of notice under section 148
submits that he supports the order of lower authorities.
4. I have considered the contentions of both the parties and have gone through the orders of lower authorities carefully. On perusal of record and the order of lower authorities, I find merit in the submission of ld. AR of the assessee that case of assessee for A.Y. 2016-17 was reopened beyond three years from the end of relevant assessment year, thus, as per amended provisions of section 151(ii) the ld. Assessing Officer was required to obtain approval from Principal
Chief Commissioner or Principal Director General or Chief Commissioner or Director General. However, in the present case, the ld. Assessing Officer has obtained approval / sanction from Pr. CIT which is invalid. Thus, notice under section 148 is invalid being without sanction of law; therefore, subsequent action initiated thereon has become void ab initio. Similar view was taken by Mumbai Tribunal in ACIT Vs Manish Financial (supra). In the result, notice
Niraj Sarju Mandal
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under section 148 and proceeding under section 147 are quashed. In the result, the assessee succeeded on the primary submissions of his ld AR.
5. Considering the fact that assessee has succeeded on first legal issue, therefore, adjudication on the grounds on merit have become academic.
6. In the result, the appeal of the assessee is allowed.
Order was pronounced in the open Court on 01/08/2025. PAWAN SINGH
JUDICIAL MEMBER

MUMBAI, Dated 01/08/2025
Biswajit

Copy of the order forwarded to:
(1)
The Assessee;
(2)
The Revenue;
(3)
The PCIT / CIT (Judicial);
(4)
The DR, ITAT, Mumbai; and (5)
Guard file.
By Order