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2016 (6) TMI 836 - AT - Income TaxReopening of assessment - competent authority to issue notice - the assessment year involved is 2006-07 and the original assessment u/s 143(3) was completed on 31.12.2008. i.e. notice u/s 148 is dated 17.9.2012 which is beyond the period of 4 years from the end of the relevant assessment year - Held that:- The instant fact-situation is covered by sub-section (1) of section 151 of the Act read with the proviso, which prescribes that where assessment has been made u/s 143(3) of the Act and the notice u/s 148 is to be issued after the expiry of 4 years from the end of the relevant assessment year, no such notice shall be issued 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 issue of such notice. Ostensibly, in the present case the notice issued u/s 148 of the Act, reveals that the approval has been accorded by the Additional Commissioner of Income-tax, who is not competent authority referred to in the first proviso to Sec. 151(1) of the Act. At the time of hearing, even the records produced by the Department reveal that the ‘Form for recording the reasons for initiating proceeding u/s 148 of the Act’ depicts the satisfaction of the Additional Commissioner of Income-tax and not by any of the authorities specified in the proviso to Sec. 151(1) of the Act which is squarely attracted in the present case. Therefore, the initiation of proceeding by issuance of such notice u/s 148 of the Act suffers from an illegal infirmity, and is liable to be set-aside, and we do so. As a consequence, the subsequent assessment order passed by the Assessing Officer dated 31.12.2013 is bad in the eyes of law and is hereby quashed. - Decided in favour of assessee
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