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2022 (7) TMI 685 - AT - Income TaxValidity of reopening of assessment u/s 147 - Mandation of obtaining sanction of JCIT - addition made u/s 68 - HELD THAT:- Admittedly, before initiation of proceeding under section 147 of the Act, there was no assessment made either under section 143(3) or section 147 of the Act. Therefore, assessee’s case falls under sub-section (2) of section 151 of the Act. Thus, before issuance of notice under section 148, sanction of JCIT was required to be obtained. However, on perusal of the form for recording the reasons for initiating the proceedings under section 148 and obtaining sanction/approval for issuance of notice u/s 148 of the Act, a copy of which was submitted before us by learned Departmental Representative, it is very much evident that the AO has obtained the approval/sanction of the Commissioner of Income Tax on 28.03.2011 for issuance of notice under section 148 - Therefore, it is very much clear, the sanction/approval obtained by the AO for issuance of notice under section 148 of the Act is not by the competent authority in terms with section 151(2) of the Act. In fact, in the reasons recorded, the Assessing Officer has clearly stated that he has obtained approval/sanction from the Commissioner of Income Tax. It is a well settled legal principle that when a statutory provision requires a certain act to be done by a particular authority in a particular manner, it should be done by that authority in that manner only. Any other authority, be it higher or inferior, cannot substitute the authority prescribed under the statute. The legal principle on this aspect is very much clear and leaves no room for doubt. Merely because the approval/sanction is granted by a superior authority, it will not make the proceeding valid. Though, there are host of other decisions laying down the same legal principle, however, for avoiding multiplicity, we desist from discussing all the case laws. Thus, considering the fact that sanction/approval for issuance of notice under section 148 of the Act has not been granted by the prescribed authority in terms with section 151(2) of the Act, the notice issued under section 148 of the Act has to be declared as invalid. As a natural corollary, assessment order passed, in pursuance thereof, is also invalid. The said assessment order, being legally unsustainable, has to be quashed. Accordingly, we do so.
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