2024 (8) TMI 286 - HC - Income Tax

Validity of reassessment proceedings - Correct Sanctioning Authority u/s 151(ii) - Validity of approval granted by Principal Commissioner of Income Tax (PCIT) instead of Principal Chief Commissioner of Income Tax (PCCIT) u/s 151(ii) - HELD THAT - Petitioner is correct in saying that the AY is 2018-19 and, therefore, since more than three years have expired from the end of the assessment year, Sanctioning Authority u/s151(ii) of the Act should be the Principal Chief Commissioner of Income Tax ( PCCIT ) and not the PCIT. As held in Siemens Financial Services Private Limited 2023 (9) TMI 552 - BOMBAY HIGH COURT the sanction is invalid and consequently, the order and the consequent notice u/s 148A(d) and Section 148, respectively, of the Act should be quashed and set aside. Thus order passed u/s 148A(d) and notice issued under Section 148 of the Act both are quashed and set aside. Decided in favour of assessee.

Summary

The High Court of Bombay quashed an order and notice issued under Section 148 of the Income Tax Act, 1961 due to incorrect sanctioning authority. The petitioner's challenge was based on the fact that the approval was granted by the Principal Commissioner of Income Tax instead of the required Principal Chief Commissioner of Income Tax. The court ruled in favor of the petitioner, citing a previous case as precedent. The petition was disposed of with no costs, and all rights and contentions were kept open.