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TMI Blog2024 (8) TMI 110X X X X Extracts X X X X X X X X Extracts X X X X ..... d of four years had elapsed from the end of the relevant assessment year. In the present case, the notice u/s. 148 of the Act was issued on 28.03.2014 and the relevant A.Y. is 2007-08. Thus, there is no dispute that period of more than four years had elapsed from the end of the relevant assessment year and the approval is required to be obtained only from the Principal Chief Commissioner or Chief Commissioner or Principal Commissioner or Commissioner, as the case may be, whereas the sanction was obtained from the Joint Commissioner of Income-tax. The failure of the AO to obtained prior permission from the Principal Chief Commissioner or Chief Commissioner or Principal Commissioner or Commissioner as the case may be is against the provisions ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... led on 17.10.2007 declaring Nil income. Against the said return of income, the assessment was completed by the ITO, Ward-11(3), Pune vide order dated 30.12.2009 passed u/s. 143(3) of the Income-tax Act, 1961 (hereinafter also called the Act ) accepting the returned income. 3. Subsequently, on receipt of the information based on the information obtained from search operations conducted in the premises of one Mr. Pravin Kumar Jain Group that the appellant company is a beneficiary of the accommodation entries provided by said Mr. Pravin Kumar Jain Group, the Assessing Officer (AO) formed an opinion that income escaped assessment to tax. Accordingly, a notice u/s. 148 was issued to the appellant company on 28.03.2014 after recording the reasons ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is satisfied on the reasons recorded by the AO, that is a fit case for issue of notice u/s. 148 whereas in the present case, approval of Joint Commissioner of Income-tax was only obtained. The said contention of the appellant was rejected by the ld. CIT(A)/NFAC by holding that such defect is curable and the assessment cannot be held to be invalid, placing reliance on the provisions of section 292B of the Act. On merits also, the addition was confirmed by the ld.CIT(A)/NFAC placing reliance on the decision of Hon ble Supreme Court in the case of Pr.CIT vs. NRA Iron Steel Pvt. Ltd. 6. Being aggrieved, the appellant company is in appeal before the Tribunal in the present appeal. 7. The ld. Authorised Representative for the assessee submits tha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es that prior sanction of Principal Chief Commissioner or Chief Commissioner or Principal Commissioner or Commissioner is required to be obtained for issuance of notice u/s. 148 if the period of four years had elapsed from the end of the relevant assessment year. In the present case, the notice u/s. 148 of the Act was issued on 28.03.2014 and the relevant A.Y. is 2007-08. Thus, there is no dispute that period of more than four years had elapsed from the end of the relevant assessment year and the approval is required to be obtained only from the Principal Chief Commissioner or Chief Commissioner or Principal Commissioner or Commissioner, as the case may be, whereas the sanction was obtained from the Joint Commissioner of Income-tax. The fai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... section 292B of the Act as held by the Hon ble Rajasthan High Court in the case of Dhadda Exports and ITO and Another (2015 377 ITR 347 (Raj.). The relevant paragraph of the judgment is reproduced below : In the opinion of this court also, resort to section 292B of the Income-tax Act cannot be made to validate an action, which has been rendered illegal due to breach of mandatory condition of the sanction on satisfaction of the Chief Commissioner or the Commissioner under the proviso to sub-section (1) of section 151. This is an inherent lacunae affecting the very correctness of the notice under section 148 and is such which is not curable by recourse to section 292B of the Income-tax Act. 13. In view of the settled legal position, we hold t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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