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Facts
The assessee's appeals relate to assessment year 2017-18 and arise from orders passed under section 147 r.w.s. 144 and section 271AAC(1) of the Income-tax Act. The primary issue revolves around the validity of the section 148 notice issued for reopening the assessment.
Held
The Tribunal held that the section 148 notice was issued prior to the approval of the reopening reason by the Additional Commissioner, which is unsustainable in law. Consequently, the reopening proceedings were quashed.
Key Issues
Whether the reopening of assessment under Section 148 is valid when the notice was issued before obtaining approval under Section 151.
Sections Cited
147, 148, 144, 271AAC(1), 151
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, DELHI BENCH ‘A’ NEW DELHI
Before: SHRI SATBEER SINGH GODARA & SHRI NAVEEN CHANDRA
many orders DIN & Order No. ITBA/NFAC/S/250/2023-24/1058278959(1) dated 28.11.2023 & DIN & Order No. ITBA/NFAC/S/250/2023-24/1059988836(1) dated 22.01.2024, in proceedings u/s 147 r.w.s. 144 and 271AAC(1) of the Income-tax Act, 1961, hereinafter referred to as the ‘Act’, respectively. substantive ground that the learned lower authorities have erred in law and on facts in initiating the impugned reopening vide section 148 notice issued to her on 28.03.2021 (page ‘A’ in the paper book). Her precise case in other words is that the learned prescribed authority i.e. the “Additional Commissioner, Range-1”, had in fact granted his section 151 approval on 30.03.2021 at 12.14 PM (page A1 to A3 in the case records), whereas the above section 148 notice had been issued to her very well before that i.e. on March 28, 2021 at 3.30 PM.
Faced with this situation, the Revenue could hardly dispute all the preceding factual development in the assessee’s case. We, therefore, are of the considered view that given the fact that the impugned section 148 reopening notice had been issued very well before the learned Additional Commissioner having approved the Assessing Officer’s reopening reason, the same is not sustainable in law. We, accordingly quash the impugned reopening in very terms.
All other pleadings on merits between the parties stand rendered academic.
The assessee succeeds in her ‘quantum’ appeal ITA 4037/Del/2024 in above terms.
Same order to follow in assessee’s consequential penalty appeal ITA 4054/Del/2024 are allowed in above terms. A copy of this common order be placed in the respective case files.
Order pronounced in open court on 27.08.2025.