2024 (8) TMI 180 - HC - Income Tax

Validity of reassessment proceedings - Proper sanctioning authority - sanction to pass the order issued by the Principal Commissioner of Income Tax ( PCIT ) and not by the Principal Chief Commissioner of Income Tax (PCCIT ) - HELD THAT - The impugned order and the impugned notice state that the Authority that has accorded the sanction is the PCIT, Mumbai-5. The matter pertains to AY 2018-2019 and since the impugned order as well as the notice are issued on 22nd April 2022, both have been issued beyond a period of three years. Therefore, the sanctioning authority has to be the PCCIT as provided under Section 151(ii) of the Act. The proviso to Section 151 of the Act has been inserted only with effect from 1st April 2023 and, therefore, shall not be applicable to the matter at hand. In the circumstances, as held by this Court in Siemens Financial Services Private Limited 2023 (9) TMI 552 - BOMBAY HIGH COURT the sanction is invalid and consequently, the impugned order and impugned notice both u/s 148A(d) and 148 of the Act are hereby quashed and set aside. Decided in favour of assessee.

Summary

The petition challenges a notice and order under Section 148 of the Income Tax Act for Assessment Year 2018-2019. The sanction for the order was issued by the wrong authority, leading to the quashing of the order and notice. The decision is based on a previous court ruling and the timing of the sanctioning authority. Petition disposed with no costs.