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2022 (11) TMI 138 - HC - Income TaxValidity of Reopening of assessment - mandatory procedure of a prior inquiry u/s 148-A has not been followed - HELD THAT:- As apparent that as regards the subsequent notices dated 8th April, 2021 u/s 148 for the two AYs in question, since the mandatory procedure of a prior inquiry u/s 148-A of the Act has not been followed, those notices are unsustainable in law and they are hereby quashed. The initial notices u/s 148 issued on 31st March, 2021 Section 151 of the Act as it stood prior to 1st April, 2021 would apply. In terms thereof, undeniably, the previous sanction for issuance of both the notices was taken only of the Additional CIT and not of either the Principal Chief CIT (for AY 2015-16) or the Principal CIT (for AY 2016-17). The reply of the Department is simply that “the Additional CIT is one of the authorities to reopen the assessment u/s 147 - This still does not answer the requirement of previous sanction having to be obtained only from the Principal Chief CIT (for AY 2015-16) and Principal CIT (for AY 2016-17). The sanction is of the Addl. CIT who is not the competent sanctioning authority. The notices u/s 148 issued in respect of both the AYs on 31st March, 2021 are illegal as they are contrary to Section 151 of the Act as it stood prior to 1st April, 2021. The impugned notices u/s 148 of the Act issued on 31st March, 2021 in respect of both AYs are also hereby quashed.
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