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.
ITAT Delhi holds that reassessment proceedings under Section 147/148 of the Income Tax Act are vitiated if the approval under Section 151 is granted mechanically without independent application of mind. The ruling mandates that authorities must record reasoned approval, impacting all pending and future reassessment cases.
ITAT Kolkata rules that reassessment under Section 148 of the IT Act is invalid if the notice is issued before formal communication of sanction under Section 151. The ruling reinforces strict procedural compliance, impacting tax authorities and assessees in reopening cases.
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.