DCIT Vs Sameep Fabrics Pvt. Ltd. (ITAT Ahmedabad)
Revenue appealed against deletion of addition on alleged accommodation-entry purchases, while Assessee filed cross-objections challenging the very jurisdiction of reopening. Tribunal noted that notices u/s 148 for both AYs 2017-18 & 2018-19 were issued beyond three years & approvals were granted only by PCIT. As per section 151(ii), when more than three years have elapsed, sanction must be from Principal Chief Commissioner or Chief Commissioner, and approval by PCIT is invalid.
Tribunal held that the statutory mandate was violated & sanction by PCIT was not a valid specified authority. Consequently, the notices u/s 148, orders u/s 148A(d), & all reassessment proceedings u/s 147 were declared void ab initio. Once jurisdiction failed, all additions on merits automatically became academic. Tribunal therefore allowed both cross-objections of Assessee & dismissed Revenue’s appeals.
FULL TEXT OF THE ORDER OF ITAT AHMEDABAD
These two appeals filed by the Revenue and the corresponding Cross-objections thereof filed by the assessee are directed against the respective orders of the Ld. Commissioner of Income-tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi (hereinafter referred to as “CIT(A)” for short), both dated 23.09.2024, passed under Section 250 of the Income-tax Act, 1961 [hereinafter referred to as “the Act” for short], for Assessment Years (AY) 2017-18 & 2018-19.
