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2012 (11) TMI 506 - ITAT DELHIReassessment proceedings - period extending four years - assessee contested against notice as without obtaining prior sanction as required u/s 151 - Held that:- No substance in the submission of DR because section 124 primarily deals with the territorial jurisdiction of AO. Section 151 deals with sanction for issue of notice u/s 148 and it nowhere refers to section 124. The sanction by competent authority, as mentioned in section 151 only, can assign proper jurisdiction to the AO and if such sanction was not obtained, the AO lacked the jurisdiction to complete the reassessment proceedings. When the legislature has specifically assigned jurisdiction to a particular authority under the Act to grant sanction then, if all other conditions are fulfilled, the sanction has to be granted by that very authority. This function cannot be delegated to any other authority. It is the legal duty cost upon that authority to perform the said function. If that authority fails in performing his legal functions and the same is performed by the other authority then it goes to the very root of proper assumption of jurisdiction by the authority which was required to take that sanction. This is purely legal issue and can be raised at any stage of proceeding - Hon'ble Delhi High Court in the case of CIT VERSUS SPL‟S SIDDHARTHA LTD (2011 (9) TMI 640 - DELHI HIGH COURT) has quashed the reassessment proceedings for want of sanction of Joint Commissioner of Income tax when it was so required as per section 151(2) - appeal decided in favour of assessee.
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