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TMI Blog2024 (12) TMI 114X X X X Extracts X X X X X X X X Extracts X X X X ..... so prescribed before the issue of notice u/s 148 has not been obtained in the instant case and therefore, the very initiation of proceeding under section 147 stands vitiated. See EAST INDIA HOTELS LIMITED [ 1992 (2) TMI 12 - CALCUTTA HIGH COURT] and M/S. AMBIKA IRON AND STEEL PVT. LTD.[ 2022 (1) TMI 1291 - ORISSA HIGH COURT] Thus, given that the notice under section 148 has been issued after expiry of four years from the end of the relevant assessment year, the very initiation of the proceeding stands vitiated for want of specific sanction from the competent authority as so required under sub section (1) of Section 151 of the Act. Decided in favour of assessee. - Shri. Vikram Singh Yadav, AM And Shri. Paresh M. Joshi, JM For the Assessee : Shri Ashwani Kumar, C.A And Shri Aditya Kumar, C.A For the Revenue : Smt. Kusum Bansal, CIT DR ORDER PER VIKRAM SINGH YADAV, A.M. : This is an appeal filed by the Assessee against the order of the Ld. CIT(A)/NFAC Delhi dt. 13/03/2024 pertaining to Assessment Year 2015-16. 2. In the present appeal, the assessee has raised the following grounds of appeal: 1. That order passed u/s 250 of the Income Tax Act, 1961 by the Learned Commissioner of Inc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1) was issued calling for the necessary information/ documentation from the assessee to which the assessee filed its submissions but not finding the same acceptable, the reassessment proceeding were completed vide order under section 147 r.w.s. 144B dt. 03/12/2021 wherein the loss of Rs. 3,78,93,875/- was disallowed holding the same as bogus and artificial loss so claimed by the assessee and the assessed income was determined at Rs. 4,33,75,115/-. 5. Being aggrieved, the assessee carried the matter in appeal before the Ld. CIT(A) who has since sustained the said disallowance and against the said findings and direction of the Ld. CIT(A), the assessee is in appeal before us. 6. During the course of hearing, the Ld. AR submitted that the very initiation of proceedings under Section 147 is vitiated on account of lack of approval from the competent authority under Section 151 of the Act. In this regard, our reference was drawn to the reasons so recorded by the AO before issuance of notice under section 148 of the Act and it was submitted that in the reasons so recorded, the AO has stated that Since the case is within four years from the end of assessment year under consideration. Hence ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... so be dropped as the notice has been issued after obtaining approval from the JCIT whereas the Officer authorized to record the necessary satisfaction has to be the Chief Commissioner of Income Tax / Commissioner of Income Tax. It was submitted that the AO has failed to take cognizance of the said submission and proceeded with the reassessment proceeding. 9. It was submitted that the assessee thereafter took a specific ground before the Ld CIT(A) wherein the assessee has challenged very initiation of proceedings under section 147 as bad in law and in that regard, it was submitted that the reasons provided to the appellant mentioned that the approval from the Ld. JCIT has been obtained separately which should have been obtained from the Ld. Pr. CIT as the time for four years had elapsed and therefore the very initiation of the proceedings under section 148 were bad in law. It was submitted that the Ld. CIT(A) has also not given any findings in this regard and has gone ahead and sustained the disallowance so made by the AO. 10. It was submitted that it is now a settled law that lack of proper sanction from the competent authority will make the initiation of reassessment proceedings a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ar, unless the Principal Chief Commissioner or Chief Commissioner or Principal Commissioner or Commissioner is satisfied, on the reasons recorded by the Assessing Officer, that it is a fit case for the issue of such notice. (2) In a case other than a case falling under sub-section (1), no notice shall be issued under section 148 by an Assessing Officer, who is below the rank of Joint Commissioner, unless the Joint Commissioner is satisfied, on the reasons recorded by such Assessing Officer, that it is a fit case for the issue of such notice. (3) For the purposes of sub-section (1) and sub-section (2), the Principal Chief Commissioner or the Chief Commissioner or the Principal Commissioner or the Commissioner or the Joint Commissioner, as the case may be, being satisfied on the reasons recorded by the Assessing Officer about fitness of a case for the issue of notice under section 148, need not issue such notice himself. 14. On perusal of sub-section (1) of Section 151, it provides that no notice shall be issued under section 148 by the AO after the expiry of a period of four years from the end of the relevant assessment year unless the PCCIT or CCIT or Pr. CIT or Commissioner is sat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion of the authority mentioned in the provision of Section 151, whether it is the proviso to sub section (1) or sub section (2) would be invalid and the entire proceeding taken in pursuance thereof is liable to be quashed as the same would be without jurisdiction. It was accordingly held in the said case that there is no dispute between the parties that the impugned notices dt. 12/09/2000 has been issued without obtaining the prior sanction of the Chief Commissioner or the Commissioner of Income Tax which was obligatory on the part of the AO as in all these cases the assessment / reassessment have been completed under section 143(3) or 147 and the notice has been issued much after the expiry of period of four years from the end of the relevant assessment year and therefore the notice were held to be invalid and were set aside. In the instant case as well, we find that the notice has been issued on 30/03/2021 after the expiry of the period of four years from the end of the relevant assessment year 2015-16 without obtaining the prior sanction of the PCCIT or CCIT or Pr. CIT or CIT, therefore the legal preposition so laid down in this case squarely applies in the facts of the present ..... X X X X Extracts X X X X X X X X Extracts X X X X
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