9911796707
TMI Blog2024 (10) TMI 360X X X X Extracts X X X X X X X X Extracts X X X X ..... 147 r/w section 144B of the Act is also quashed. Appeal by the assessee is allowed. - Shri. Prashant Maharishi, Accountant Member And Shri. Sandeep Singh Karhail, Judicial Member For the Assessee : Shri Dharan Gandhi For the Revenue : Shri. Akhatar Hussain Ansari Sr. DR ORDER PER SANDEEP SINGH KARHAIL, J.M. The present appeal has been filed by the assessee challenging the impugned order dated 24/05/2024, passed under section 250 of the Income Tax Act, 1961 ( the Act ) by the learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, New Delhi, [ learned CIT(A) ], for the assessment year 2018-19. 2. In this appeal, the assessee has raised the following grounds: 1) The assessment order u/s 147 read with section 144B of the Act dated 19.01.2024 is bad in law. 2) The notice issued u/s 148 of the Act dated 22.04.2022 is bad in law. The Ld. AO has not fulfilled the jurisdictional requirements of section 147 to 151 of the Act. 3) The Notice u/s 148 of the Act is barred by limitation. 4) The Ld. CIT(A), NFAC, erred in confirming the addition of Rs. 22,92,130/- made by the Ld. AO as long termcapital gain of the appellant of AY 2018-19. 5) Without prejudice to the abov ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 65 lakh has escaped assessment and this is a fit case for issue of notice under section 148 of the Act for the assessment year 2018- 19. Thereafter, on 22/04/2022 notice under section 148 of the Act was issued by the Jurisdictional Assessing Officer. The assessment order was passed under section 147 r/w section 144B of the Act computing long-term capital gains at Rs. 22,92,130 and adding the same to the total income of the assessee. 5. During the hearing, the learned Authorised Representative ( learned AR ) submitted that the reopening of assessment under section 147 of the Act, in the present case, is bad in law as the order dated 22/04/2022 was passed under section 148A(d) of the Act, after the grant of approval by the Principal CIT-27, Mumbai. It was submitted that as per the provisions of section 151(ii) of the Act if more than three years have elapsed from the end of the relevant assessment year, the Specified Authority for the purpose of sections 148 and 148A of the Act is Principal Chief Commissioner or Principal Director General or Chief Commissioner or Director General. 6. On the contrary, the learned Departmental Representative ( learned DR ) vehemently relied on the orde ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rior approval of the Specified Authority has passed the order undersection 148A(d) of the Act. Further, Explanation 3 clarifies that the Specified Authority for the purpose of section 148 shall be the Specified Authority as referred to in section 151 of the Act. 9. Further, section 151 of the Act deals with the Specified Authority for section 148 and section 148A of the Act, and the same reads as follows: 151. Specified authority for the purposes of section 148 and section 148A shall be, (i) Principal Commissioner or Principal Director or Commissioner or Director, if three years or less than three years have elapsed from the end of the relevant assessment year; (ii) Principal Chief Commissioner or Principal Director General or Chief Commissioner or Director General, if more than three years have elapsed from the end of the relevant assessment year. 10. Therefore, from the plain reading of section 151 of the Act, it is evident that in the case where more than three years have elapsed from the end of the relevant assessment year, the Specified Authority for the purpose of granting prior approval, as required under section 148 of the Act, is Principal Chief Commissioner or Principal D ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rates the meaning of 'specified authority' as provided for in section 151 of the Act. 24. As per section 151 of the Act, the 'specified authority' who has to grant his sanction for the purposes of section 148 and section 148A is the Principal Chief Commissioner or Principal Director General or where there is no Principal Chief Commissioner or Principal Director General, the Chief Commissioner or Director General if more than three years have elapsed from the end of the relevant assessment year. The present petition relates to the AY 2016-17, and as the impugned order and impugned notice are issued beyond the period of three years which elapsed on 31st March, 2020 the approval as contemplated in section 151(ii) of the Act would have to be obtained which has not been done by the Assessing Officer. The impugned notice mentions that the prior approval has been taken of the 'Principal Commissioner of Income-tax - 8' ('PCIT-8') which is bad in law as the approval should have been obtained in terms of section 151(ii) and not section 151(i) of the Act and the PCIT-8 cannot be the specified authority as per section 151 of the Act. Further, even in the affidav ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
