9911796707
TMI Blog2024 (7) TMI 726X X X X Extracts X X X X X X X X Extracts X X X X ..... present case the assessment year in question is 2016-17 and the impugned notice itself has been issued on 30 July, 2022, it is issued after a period more than 3 years having elapsed from the end of the said assessment year, hence, clause (ii) of Section 151 of the Act was applicable, which required the sanction to be issued by either Principal Chief Commissioner or Principal Director General or where there is no Principal Chief Commissioner or Principal Director General, Chief Commissioner or Director General for issuance of notice u/s 148 of the Act. It is held that the sanction of the specified authority has to be obtained in accordance with the law existing when the sanction is obtained and, therefore, the sanction is required to be obtained by applying the amended section 151 (ii) of the Act and since the sanction has been obtained in terms of section 151 (i) of the Act, the impugned order and impugned notice are bad in law and should be quashed and set aside. The respondent s case based on the notification dated 31 March, 2020 issued under the Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020 ( TOLA ) was concerned, the Court held that such not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y 30, 2022 and the impugned notice (Exhibit DD) dated July 30, 2022; c. that this Hon ble Court be pleased to issue a Writ of Prohibition or any other writ order or direction under Article 226 of the Constitution of India ordering and directing the Respondents not to take any action in furtherance to the impugned initial notice (Exhibit AA) dated May 28, 2022, the impugned order (Exhibit CC) dated July 30, 2022 and the impugned notice (Exhibit DD) dated July 30, 2022. 4. Mr. Agarwal, learned counsel for the petitioner at the outset, would submit that although the petitioner has a strong case on merits in assailing the impugned order as also against the impugned notice issued under Section 148A of the Act, his contention is that the petition needs to succeed on the primary ground that the impugned notice has been issued in breach of the provisions of Section 151 of the Act, which provides for a sanction by the specified authority before issuance of notice. It is his submission that in the present case, such sanction to issue the impugned notice dated 30 July, 2022 was issued by the Principal Commissioner which itself is contrary to the provisions of Section 151 (ii), in as much as a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... irty days from the date on which such notice is issued, or such time, as may be extended by him on the basis of an application in this behalf, as to why a notice under section 148 should not be issued on the basis of information which suggests that income chargeable to tax has escaped assessment in his case for the relevant assessment year and results of enquiry conducted, if any, as per clause (a); (c) consider the reply of assessee furnished, if any, in response to the show-cause notice referred to in clause (b); (d) decide, on the basis of material available on record including reply of the assessee, whether or not it is a fit case to issue a notice under section 148, by passing an order, with the prior approval of specified authority , within one month from the end of the month in which the reply referred to in clause (c) is received by him, or where no such reply is furnished, within one month from the end of the month in which time or extended time allowed to furnish a reply as per clause (b) expires: Provided that the provisions of this section shall not apply in a case where,- (a) a search is initiated under section 132 or books of account, other documents or any assets are ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nce Act, 2021 have become applicable, as although the assessment year in question is 2016-17 in respect of which the assessment is sought to be reopened by issuance of notice under section 148, which is dated 30 July, 2022. Such amended provision would squarely become applicable the date of notice under section 148 itself being 30 July, 2022. 9. The record clearly indicates that the sanction in the present case was issued by the Principal Commissioner which can only be in respect of cases if three years or less than three years have elapsed from the end of the relevant assessment year, as would fall under the provisions of clause (i) of Section 151 of the Act. As in the present case the assessment year in question is 2016-17 and the impugned notice itself has been issued on 30 July, 2022, it is issued after a period more than 3 years having elapsed from the end of the said assessment year, hence, clause (ii) of Section 151 of the Act was applicable, which required the sanction to be issued by either Principal Chief Commissioner or Principal Director General or where there is no Principal Chief Commissioner or Principal Director General, Chief Commissioner or Director General for is ..... X X X X Extracts X X X X X X X X Extracts X X X X
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