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Facts
The assessee appealed an order from the National Faceless Appeal Center (NFAC) for AY 2017-18. The primary issue was the reopening of the assessment after three years from the relevant assessment year.
Held
The tribunal held that the case was reopened without proper sanction from the authorized authorities as required by Section 151(ii) of the Income Tax Act. Therefore, the notice and assessment order were quashed.
Key Issues
Whether the reopening of assessment after three years was validly sanctioned as per Section 151(ii) of the Income Tax Act, 1961.
Sections Cited
250, 151(i), 151(ii), 147, 144B
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Income Tax Appellate Tribunal, MUMBAI BENCH “SMC”, MUMBAI
Before: SHRI NARENDER KUMAR CHOUDHRY
Per : Narender Kumar Choudhry, Judicial Member:
This appeal has been preferred by the Assessee against the order dated 28.10.2024, impugned herein, passed by the National Faceless Appeal Center (NFAC)/ 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. 2017-18.
Though the Ld. D.R. relied on the orders passed by the authorities below, however, it is the admitted fact that the case of the Assessee was reopened after three years from the end of relevant assessment year, by taking sanction from the Ld. Principal Commissioner as empowered u/s 151(i) of the Act but not from the Ld. Pr. Chief Commissioner or Pr. Director General or Chief Commissioner or Director General, authorities authorized to grant such sanction, as required in this case and therefore there is violation of the provisions of section 151(ii) of the Act.
Thus, the notice dated 26.07.2022 along with the assessment order dated 09.05.2023 u/s 147 r.w.s. 144B of the Act is liable to be quashed, consequently the same is quashed.
In the result, the appeal filed by the Assessee is allowed.
Order pronounced in the open court on 03.06.2025.