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TMI Blog2024 (8) TMI 130X X X X Extracts X X X X X X X X Extracts X X X X ..... Act since more than three years had lapsed from the end of the relevant Assessment Year. The period of three years would expire on 31st March, 2020 while the first notice (which now was purported to be a notice under Section 148A), came to be issued on 30th June, 2021 i.e. one year and three months after the lapse of three years. The sanction in the instant case has been granted by the Principal Commissioner of Income-tax-3. For cases where the reassessment is sought to be undertaken more than three years after the end of the relevant AY, the specified authorities who may sanction the reassessment are of a more senior and higher rank. Section 151 of the Act contains an inherent check and balance when the reopening is sought to be initiated ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is 2016-17. The show-cause notice under Section 148 is dated 29th July, 2022. Prior to that, on 30th June, 2021, the returns that had been filed for Assessment Year 2016-17 were sought to be reopened on the premise that income had escaped assessment within the meaning of Section 147 of the Act. The Petitioner filed returns on 9th December, 2021, and vide letter dated 10th December, 2021, requested for a copy of reasons for which the reassessment had been initiated, and sought a copy of the sanction obtained for the reopening of the assessment. 4. On 3rd March, 2022 the National Faceless Assessment Centre issued a notice under Section 142 (1) raising certain questions about various credits and debits and called for documents referred to in t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the record that the Petitioner sought time for filing objections under Section 148A of the Act, on account of one Mr. Chandan Sharma who was in charge of the Petitioner s tax matters had acute cervical pain and was even hospitalized. On 29th July, 2022, an order purportedly under Section 148A (d) and a new notice under Section 148 came to be issued. Subsequently, a notice dated 2nd November, 2022, intimating that the assessment would be completed under Section 144B of the Act was issued. 7. We have heard Learned Counsel for the parties and have examined the record. It is common ground that the matter at hand would stand covered by a decision of a Division Bench of this Court in Siemens Financial Services Pvt. Ltd. Vs. Deputy Commissioner of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... anted by any authority empowered under Section 151 (ii). Consequently, indeed, the matter at hand would be covered by the decision in Cipla, which inherently deals with the findings in Siemens. The following extracts would be relevant:- 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 elaps ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d 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. [Emphasis Supplied] 10. In this view of the matter the Petition deserves to be allowed since the decision in Cipla indistinguishably applies to the facts of the case involved in the matter at hand. In the instant case too, Assessment Year 2016-17 is involved and the sanction is accorded by the Principal Commissioner of Income-tax. Consequently, the Writ Petition deserves to be allows, which we hereby do in terms of prayer clause (a) which reads thus:- a. that this Hon'ble Court be pleased to issue a W ..... X X X X Extracts X X X X X X X X Extracts X X X X
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