TMI Blog2025 (1) TMI 1052X X X X Extracts X X X X X X X X Extracts X X X X ..... t the notice under section 148 has been issued without obtaining the approval from the correct authority as specified under section 151. As relying on Vodafone Idea case [ 2024 (2) TMI 1408 - BOMBAY HIGH COURT] we hold that the notice issued by the AO under section 148 without obtaining approval from correct appropriate authority is invalid and the assessment done under section 147 r.w.s. 144(13) of the Act is liable to be quashed. Decided in favour of assessee. X X X X Extracts X X X X X X X X Extracts X X X X ..... Income-tax Act while (1) passing an order u/s 148A(d) of the Act dated 04-04-2022 and (ii) issuing a notice u/s. 148 of the Act dated 04-04- 2022." 3. The additional grounds raised are pure legal issue, which does not require investigation of new facts. Hence placing reliance on the judgment of the Hon'ble Apex Court in the case of National Thermal Power Co. Ltd. v. CIT (1998) 229 ITR 383 (SC), we admit the additional grounds. We will first consider the additional ground for adjudication. 4. The ld. AR submitted that the order passed under section 148A(d) and the notice issued by the AO under section 148 both dated 04.04.2022 are issued without obtaining the approval from the correct appropriate authority as required under section 151(ii ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Provided that the period of three years for the purposes of clause (i) shall be computed after taking into account the period of limitation as excluded by the third or fourth or fifth provisos or extended by the sixth proviso to sub-section (1) of section 149.] Relied proviso 3 to section 149(1) of the I.T. Act. (Emphasis supplied) 3. Section 151 provides that Specified Authority shall be Commissioner, if three years or less than three years have elapsed from the end of the relevant assessment year. However, this period of 3 years has to be computed after taking into account the period of limitation as excluded by the fifth proviso to section 149, which reads as under- Provided also that for the purposes of computing the period of limi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... .2024] 7. We heard the parties and perused the material on record. In assessee's case the 148A notice for AY 2017-18 was issued on 12.03.2022 and the order disposing the objections of the assessee was passed on 04.04.2022 under section 148A(d) of the Act. The AO issued notice under section 148 dated 04.04.2022. On perusal of the order under section 148A(d) of the Act and 148 (page 42 to 46 and 47 of PB) we notice that the impugned notices are issued after obtaining the prior approval of CIT (IT), Mumbai-2. The case of the revenue is that the notice dated 04.04.2022 is issued within three years since as per the 5th proviso to section 149, the AO has got additional 9 days for issue of notice under section 148 i.e. upto 09.04.2022. since ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fully entitled to receive from the Department. In the affidavit in reply, the stand taken by the Revenue is it will be made available during the re- assessment proceeding. 3. The impugned order and the impugned notice both dated 7th April 2022 state that the Authority that has accorded the sanction is the PCIT, Mumbai 5. The matter pertains to Assessment Year ("AY") 2018-19 and since the impugned order as well as the notice are issued on 7th April 2022, both have been issued beyond a period of three years. Therefore, the sanctioning authority has to be the PCCIT as provided under Section 151 (ii) of the Act. The proviso to Section 151 has been inserted only with effect from 1" April 2023 and, therefore, shall not be applica ..... X X X X Extracts X X X X X X X X Extracts X X X X
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