Notice Under Section 148 Issued After 3 Years Must be Approved by Higher Authority, Not PCIT<\/strong><\/p>\n The Income Tax Appellate Tribunal<\/a> (ITAT), Ahmedabad,<\/strong> quashed reassessment proceedings of a company after finding that the notices beyond the three-year period were issued without approval from the correct authority.<\/strong><\/p>\n The Revenue<\/strong> filed an appeal before the ITAT, Ahmedabad,<\/strong> to challenge the deletion<\/strong> of a large addition<\/a><\/strong> made by the assessing officer for the accommodation entries<\/strong> received by an entity. While the assessee, Sameep Fabrics Pvt. Ltd.,<\/strong> filed a cross objection against this deletion order of CIT(A), the assessee company challenged the validity<\/strong> of reopening<\/strong> under section 148.<\/strong><\/p>\n The assessee company argued that the notices for AY 2017-18<\/strong> and AY 2018-19<\/strong> were issued after more than 3 years<\/strong>, and approval was wrongly granted by the Principal<\/a> The Tribunal agreed with the company, saying that the notice u\/s 148<\/strong> was issued on 31.07.2022<\/strong> for AY 2017-18<\/strong> and for AY 2018-19<\/strong> on 10.04.2022,<\/strong> which shows that it was beyond the three-year period.<\/p>\n The ITAT cited clause (ii) of Section 151<\/strong>, which specifies the higher authority<\/strong> whose approval is required<\/strong> before issuing<\/strong> a notice<\/strong> for reassessment under Section 148<\/strong>, if three years have elapsed from the end of the relevant assessment year. The specified authority includes the Principal Chief Commissioner<\/strong> or Principal Director General or Chief Commissioner or Director General, and not the Principal Commissioner<\/strong>.<\/p>\n Based on this, the reassessment proceedings<\/strong> initiated under section 147<\/strong> of the Income Tax Act were declared null<\/strong> and void,<\/strong> and the same were quashed<\/strong> by the Tribunal.<\/p>\n<\/div>\n Join StudyCafe Membership. For More details about Membership Click Join Membership Button<\/p>\n Join Membership<\/a><\/p>\n In case of any Doubt regarding Membership you can mail us at [email\u00a0protected]<\/span><\/a><\/p>\n<\/div>\n Join Studycafe’s WhatsApp Group or Telegram Channel for Latest Updates on Government Job, Sarkari Naukri, Private Jobs, Income Tax, GST, Companies Act, Judgements and CA, CS, ICWA, and MUCH MORE!”<\/p>\n<\/div>\n
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Commissioner of Income-tax<\/a> (PCIT)<\/strong> instead of the higher authority.<\/strong><\/p>\n
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