2008 (2) TMI 568 - HC - Income Tax

Reassessment notice - Tribunal has further held that the contention of the assessee that the approval of the Deputy Commissioner was not obtained by the Income-tax Officer before issuance of notice has not been controverted by the learned Departmental representative and on this and other reasons it is held that the notice is not in conformity with the section and is without jurisdiction. - In our opinion, this is a clear finding and under section 151(2) prior approval of the concerned authority before issuance of notice is required. Considering the finding recorded by the Income-tax Appellate Tribunal under section 151, it is not necessary to discuss the finding on the point of issue of notice under section 292B.

Summary

Issues involved: Jurisdiction of notice issued by the Assessing Officer under section 151 without prior approval of the Deputy Commissioner or Joint Commissioner.

Analysis:
1. The High Court of Bombay, in this judgment, examined the issue of jurisdiction regarding a notice issued by the Income-tax Officer without obtaining prior approval from the Deputy Commissioner or Joint Commissioner as required under section 151 of the Income Tax Act. The Tribunal found that the notice was issued without jurisdiction as the approval of the Deputy Commissioner was not obtained before issuance. The Tribunal emphasized the necessity of prior approval under section 151(2) and held that the notice was not in conformity with the law. The Court agreed with the Tribunal's findings and highlighted that the prior approval of the concerned authority is indeed required before the issuance of such a notice. The Court dismissed the argument that the Tribunal erred in its interpretation of section 151(2), affirming the importance of obtaining prior approval before issuing a notice.

2. The Court further upheld the decision of the Income-tax Appellate Tribunal, stating that the order cannot be faulted based on the facts presented. By affirming the Tribunal's findings on the necessity of prior approval under section 151(2) and the jurisdictional issue of the notice, the Court concluded that the appeal must be dismissed. The judgment emphasizes the significance of complying with the procedural requirements outlined in the Income Tax Act, particularly regarding the issuance of notices by Assessing Officers and the essential role of obtaining prior approval from the designated authorities before taking such actions.