9911796707
|
Home
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2024 (5) TMI 385 - AT - Income TaxValidity of reopening of assessment - no approval was taken U/s 151 - HELD THAT - On perusal of the recorded reason it reveals that the ld. AO has not taken any approval u/s 151 of the Act from higher authorities. Whether the mistake is curable U/s 292B? - The reply is against the revenue.Issuance of notice without approval has been rendered illegal due to breach of mandatory condition of the sanction on satisfaction of higher authority under proviso to Section 151of the Act. Considering this we set aside the impugned appeal order. See M/S DHADDA EXPORTS VERSUS INCOME TAX OFFICER WARD 1 (1) JAIPUR 2015 (4) TMI 304 - RAJASTHAN HIGH COURT - Assessee appeal allowed.
Issues involved:
The judgment involves appeals against the order of the ld. Commissioner of Income Tax (Appeals) NFAC, Delhi, under section 250 of the Income Tax Act 1961 for A.Ys. 2011-12 to 2012-13, emanating from the order of the ld. Income Tax Officer, Ward-1(4), Udaipur, under section 143(3)/148 of the Act. Issue 1: Jurisdiction and legality of the impugned order The appellant challenged the impugned order under sections 147/148 and notices as being bad in law, illegal, invalid, and void-ab-initio, for lack of jurisdiction, absence of proper approval u/s 151 of the Act, and being barred by limitation. The appeal sought to quash the order based on various legal reasons. Issue 2: Addition of unsecured loans and interest payments The appellant contested the addition of Rs.4,00,000/- as unsecured loans and Rs.15,649/- as interest payments made to creditors on the alleged accommodation entries. It was argued that the additions were contrary to law and facts on record, urging for their deletion. Issue 3: Charging of interest u/s 234A, B, C The appellant disputed the charging of interest under sections 234A, B, C, denying liability and requesting the deletion of such interest charges, claiming them to be against legal provisions and facts. Issue 4: Approval for issuance of notice u/s 148 The appellant raised concerns regarding the lack of approval u/s 151 for issuing the notice u/s 148, more than two years from the impugned assessment years. The argument was centered on the procedural requirement of obtaining approval from higher authorities before issuing such notices. Judgment Summary: The ITAT Jodhpur allowed the appeals of the assessees, highlighting the absence of approval u/s 151 for issuing the notice u/s 148, rendering the proceedings null and void. Citing legal provisions and relevant case law, the judgment emphasized the mandatory nature of obtaining approval from higher authorities before issuing such notices. The impugned appeal order was set aside, quashing the assessment order passed u/s 147 of the Act. The appeals were allowed based on the lack of approval, leading to the deletion of additions and interest charges. The decision in one appeal was deemed applicable to others, resulting in the allowance of all appeals.
|
