Topic
ITAT Delhi invalidates reassessment proceedings where the notice under Section 148 was issued beyond three years without approval from the Principal Chief Commissioner of Income Tax (PCCIT). The ruling underscores strict jurisdictional compliance, affecting all taxpayers facing late reassessment notices under the Income Tax Act.
The ITAT Delhi has ruled that a reassessment notice under Section 148 is void if the mandatory prior approval from the Principal Chief Commissioner or Principal Director General of Income Tax under Section 151(2)(b) is obtained more than three years after the end of the relevant assessment year. This sets a strict temporal limit on procedural compliance, impacting all tax authorities issuing reopening notices and reinforcing the need for timely administrative due process in income tax reassessments.
The ITAT Delhi has ruled that any reassessment notice issued under Section 148 after three years from the end of the assessment year is void unless prior approval is obtained from the Principal Chief Commissioner of Income Tax, as mandated by Section 151(ii). This reinforces strict procedural compliance, protecting taxpayers from arbitrary reopening of closed assessments and setting a binding precedent for all assessing officers handling delayed reassessments.