9911796707
TMI Blog2024 (8) TMI 130X X X X Extracts X X X X X X X X Extracts X X X X ..... the parties, heard finally. 2. This Writ Petition challenges reassessment proceedings initiated by the Respondent-Revenue under Section 148 of the Income Tax Act, 1961 ("the Act") on multiple grounds, asserting that the initial notice, purportedly attributed to Section 148A (b) was illegal as indeed the order under Section 148A (d), and a consequential notice under Section 148 are of illegal. The Writ Petition also challenges the sanction for the reassessment granted under Section 151 of the Act. 3. The Assessment Year in question is 2016-17. The show-cause notice under Section 148 is dated 29th July, 2022. Prior to that, on 30th June, 2021, the returns that had been filed for Assessment Year 2016-17 were sought to be reopened on the pre ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... evenue for reassessment must be provided to the Assessees. Consequently, the Revenue issued a notice dated 24th May, 2022 stating that the original notice issued under Section 148 dated 30th June, 2021 should be treated as a notice under Section 148A(b). It was asserted by the Respondent that the information which suggested that income and escaped assessment had been embedded in the reasons recorded and attached the same as an annexure. The sanction for issuing the notice under Section 151 of the Act was also provided. 6. It is apparent from the record that the Petitioner sought time for filing objections under Section 148A of the Act, on account of one Mr. Chandan Sharma who was in charge of the Petitioner's tax matters had acute cervical ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed authorities who may sanction the reassessment are of a more senior and higher rank. Section 151 of the Act contains an inherent check and balance - when the reopening is sought to be initiated after a longer period, application of mind by the specific authorities who are even more senior (as compared with the authorities who are relatively subordinate, who are listed in Section 151 (i) to sanction reassessments initiated within three years) would have to be involved. 9. It is an admitted position that the sanction in the instant case had not been granted by any authority empowered under Section 151 (ii). Consequently, indeed, the matter at hand would be covered by the decision in Cipla, which inherently deals with the findings in Siemen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ection 151 of the Act and as provided under sub-clause (d), the assessing officer shall decide on the basis of material available on record including reply of the assessee, whether or not it is a fit case to issue a notice under Section 148 by passing an order, with the prior approval of specified authority within one month from the end of the month in which the reply is received. It is held that the sanction of the specified authority has to be obtained in accordance with the law existing when the sanction is obtained and, therefore, the sanction is required to be obtained by applying the amended section 151 (ii) of the Act and since the sanction has been obtained in terms of section 151(i) of the Act, the impugned order and impugned notic ..... X X X X Extracts X X X X X X X X Extracts X X X X
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