Section 151(ii) of the Income Tax Act
Income-tax Act, 2025: s.284
Section 151(ii) falls under section 151 of the Income-tax Act, 1961, which corresponds to section 284 (Sanction for issue of notice) of the Income-tax Act, 2025.
Read section 284 of the 2025 Act
Correspondence checked against the ICAI tabular mapping of the two Acts and the BharatTax.co section commentary.
The decision most relied on for Section 151(ii) is Ramesh Bachulal Mehta v. ITO (177 Taxmann.com 606), cited in 27 of the 123 judgments on BharatTax that turn on this section.
Leading authorities on Section 151(ii)
Sanction for issuing a reassessment notice under Section 148 is a prerequisite for the Assessing Officer to assume jurisdiction. The specified authority under Section 151(i) could grant sanction only until the expiry of the prescribed period, considering any extensions provided by the Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020 (TOLA).
Sanction for reassessment proceedings under Section 151(i) must be obtained from the specified authority within the extended timeline provided by Section 3(1) of TOLA, especially when the three-year period for initiating reassessment expires during the COVID-19 lockdown period. Failure to obtain sanction from the correct authority renders the reassessment proceedings invalid.
Reassessment orders are liable to be quashed if the approval for issuing notice under section 148 was not obtained from the specified authority under section 151(ii).
Reassessment proceedings are vitiated if the Assessing Officer fails to provide the assessee with the relevant documents and material forming the basis for initiating such proceedings. This failure, including not supplying statements relied upon, can lead to the quashing of the notice and subsequent assessment order.
A notice under section 148 of the Income-tax Act, 1961, issued beyond three years from the relevant assessment year, requires the sanction of the Chief Commissioner or Commissioner, and not merely the Principal Commissioner, for validity.
