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Facts
The assessee appealed an order by the National Faceless Appeal Centre (NFAC) for AY 2018-19. A notice under Section 148 was issued after more than 3 years from the end of the assessment year.
Held
The tribunal held that the sanction for the Section 148 notice, required under Section 151(ii) of the Act, was not obtained from the appropriate authority (Ld. Pr. CIT, Thane). Therefore, the notice and the subsequent assessment order were liable to be quashed.
Key Issues
Whether the Section 148 notice issued after 3 years from the end of the assessment year was valid without proper sanction from the competent authority as per Section 151(ii) of the Income Tax Act.
Sections Cited
250, 148, 151(ii)
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Income Tax Appellate Tribunal, MUMBAI BENCH “SMC”, MUMBAI
Before: SHRI NARENDER KUMAR CHOUDHRY
This appeal has been preferred by the Assessee against the order dated 21.01.2025, impugned herein, passed by the National Faceless Appeal Centre (NFAC), Delhi, u/s 250 of the Income Tax Act, 1961 (in short 'the Act') for the A.Y. 2018-19.
Admittedly, in this case, notice dated 08.04.2022 u/s.148 of the Act was issued after elapsing of more than 3 years from the end of the relevant assessment year and therefore the sanction of Ld. Pr. CCIT was required to be taken as mandated u/s 151(ii) of the Act but not from the Ld. Pr. CIT (Thane) as taken in this case and therefore the notice dated 30.07.2022 u/s.148 of the Act along with the Assessment order passed in pursuance thereof, is liable to be quashed. Thus the same is quashed.
In the result, the appeal of the Assessee is allowed.
Order pronounced in the open court on 27.05.2025.