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Facts
The assessee's appeal against the order of the National Faceless Appeal Centre, Delhi for AY 2016-17 is before the tribunal. The assessee's case was reopened under section 147 of the Income Tax Act. The assessee contended that the reopening notice under section 148 was issued without valid approval as required by section 151.
Held
The tribunal noted that the reopening notice was issued after a period of three years from the end of the relevant assessment year. Section 151 mandates that for such cases, approval must be obtained from the Principal Chief Commissioner of Income Tax. However, in this case, the approval was granted by the Principal Commissioner of Income Tax, which is not the competent authority as per the law.
Key Issues
Whether the reopening of assessment under section 147/148 was valid without obtaining the proper approval from the competent authority as stipulated under section 151 of the Income Tax Act.
Sections Cited
147, 148, 148A, 151, 144B
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Income Tax Appellate Tribunal, “B” BENCH, KOLKATA
This is an appeal preferred by the assessee against the order of the National Faceless Appeal Centre, Delhi (hereinafter referred to as the “Ld. CIT(A)”] dated 28.08.2025 for the AY 2016-17.
At the time of hearing the ld. Counsel for the assessee pressed ground no.4, which is extracted below:-
“4. For that the ld. CIT (A) erred in confirming the action u/s 148 when the reopening was bad in law since the approval obtained for issuing the original notice u/s 148 dated 29.05.2021, was not in accordance with law and therefore all subsequent proceedings are bad in law.” 3. The facts in brief are that the assessee filed the return of income on 05.08.2016, declaring total income at ₹64,65,160/-. Later on, the
The ld. AR vehemently submitted before us that the notice u/s 148 of the Act has been issued by the ld. AO without obtaining a valid approval as contemplated u/s 151 of the Income-tax Act, 1961 . The ld. AR submitted that the Finance Act, 2023, has provided that with effect from 01.04.2023, the specified authority for the purpose of section 148 and 148A of the Act shall be Pr. Chief Commissioner of Income Tax, if more than three years have lapsed from the end of the relevant assessment year.In the present case, the ld. AR submitted that the year involved is A.Y. 2017-18 and 148 was issued in the year 2022, therefore, more than three years have elapsed since the expiry of therelevant assessment year and approval has to be granted in terms of Section 151(ii) of the Act . Therefore, the ld. AR submitted that the approval u/s 151 of the Act was invalidly
The ld. DR on the other had relied on the order of lower authorities.
After hearing the rival contentions and perusing the materials available on record, we find that the reopening of assessment has been made after a period of three years from the end of the relevant assessment year as the notice u/s 148 of the Act was issued on 28.01.2022. We have perused the provisions of Section 151 of the Act and find that the competent authority to sanction the issuance of notice u/s 148 of the Act is the Pr. Chief Commissioner of Income Tax, if more than three years have elapsed after the end of the relevant assessment year. In the present case, the notice u/s 148 of the Act was dated 28.07.2022, copy of which is available at page no.14 and 15 of the Paper Book which was issued after obtaining prior approval of ld. PCIT-9, Kolkata, instead of Pr. Chief Commissioner of Income Tax, Kolkata. Therefore, the said approval is invalid and reopening based on the said approval is also invalid. Consequently, the order passed also invalid and nullity in the eyes of law. The3 case of the assessee is squarely covered by the decision of Hon'ble Apex Court in the case of Rajeev Bansal reported 469 ITR 46(SC) wherein in para 114(d) , it has been held that where the notice is issued beyond three years from the end of relevant years the sanction u/s 151 is required to be obtained form PR CCIT whereas in the instant case the approval was granted by Pr. Commissioner of Income Tax. Therefore, we quash the approval
In the result, the appeal of the assessee is allowed.
Order pronounced on 26.02.2026.