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Facts
The assessee's appeal for AY 1999-2000 arose from an assessment order framed under section 147 r.w.s. 144 of the Act. The reassessment jurisdiction was challenged on the grounds that the notice under section 148 preceded the approval of the appropriate authority. The Assessing Officer (AO) assessed the total income at Rs. 54.31 Lacs.
Held
The Tribunal held that the notice under section 148 was issued before the receipt of approval from the competent authority, rendering the notice 'non-est' and invalid. Consequently, the reassessment jurisdiction was ousted, and the assessment order was liable to be quashed on this legal ground.
Key Issues
Whether the reassessment proceedings are vitiated due to the notice u/s 148 being issued prior to the approval of the appropriate authority.
Sections Cited
147, 144, 148
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, “DB” BENCH, AGRA
Before: HON’BLE SHRI SATBEER SINGH GODARA, JM & HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM
O R D E R Manoj Kumar Aggarwal (Accountant Member) 1. Aforesaid appeal by assessee for Assessment Year (AY) 1999-2000 arises out of an order passed by learned Commissioner of Income Tax (Appeals)-1, Agra [CIT(A)] on 15-02-2011 in the matter of an assessment framed by Ld. Assessing Officer [AO] u/s. 147 r.w.s. 144 of the Act on 27- 12-2006. The Ld. AR advanced arguments and assailed the reassessment jurisdiction on legal grounds by stating the notice u/s 148 precedes the approval of appropriate authority. The Ld. Sr. DR also advanced arguments and supported the orders of lower authorities. Having heard rival submission and upon perusal of case records, our adjudication would be as under. In the assessment order, Ld. AO assessed total income at Rs.54.31 Lacs.
Upon perusal of opening paragraph of assessment order, it could be seen that the case was reopened and notice u/s 148 was issued to the assessee on 28-03-2006. The reasons have been placed in the paper- book. The sanction to reopen the case of the assessee has been placed at Page No.11 of the paper-book. Upon perusal of the approval, it could clearly be seen that the approval has been given by Ld. Joint Commissioner of Income Tax, Range-1, Agra on 29-03-2006. It is crystal clear that notice u/s 148 has been issued even before receipt of approval by Ld. AO. This fact could not be controverted before us. In our considered opinion, such a statutory notice which has been issued without valid approval of appropriate authority would be non-est notice and it has to be concluded that the same was issued in a mechanical manner. This notice enable Ld. AO to acquire valid reassessment jurisdiction. When the notice is not validly issued, the jurisdiction stand ousted. This being the case, the impugned assessment is liable to be quashed on this very legal ground. The decision of Hon’ble High Court of Allahabad in the case of Dr. Shashi Kant Garg vs. CIT (285 ITR 158) supports this proposition. Delving into other grounds has been rendered mere academic in nature. The assessee succeeds on this foremost legal ground alone.
The appeal stand allowed in terms of our above order. Order pronounced u/r 34(4) of Income Tax (Appellate Tribunal) Rules, 1963. (SATBEER SINGH GODARA) (MANOJ KUMAR AGGARWAL) "ाियक सद" /JUDICIAL MEMBER लेखा सद" /ACCOUNTANT MEMBER Dated: 25-04-2025 आदेश की "ितिलिप अ"ेिषत / Copy of the Order forwarded to : 1. अपीलाथ"/Appellant 2. ""थ"/Respondent 3. आयकरआयु"/CIT 4. िवभागीय"ितिनिध/DR 5. गाड"फाईल/GF