DCIT Vs Pankaj Goel (ITAT Delhi)
Wrong Sanction, Dead Reopening: Delhi ITAT Quashes 148A(d) Order for AY 2017-18
Delhi ITAT dismissed the Revenue’s appeal and allowed the Assessee’s cross-objection, holding that the reopening u/s 147 was void ab initio due to approval taken from an incompetent authority u/s 151(ii).
The reassessment proceedings were initiated by issuing notice u/s 148A(d) dated 30.07.2022 for AY 2017-18, i.e., beyond three years from the end of the relevant assessment year. However, the Assessing Officer obtained approval from the PCIT (Central-01), Delhi, instead of the Principal Chief Commissioner / Principal Director General, as mandatorily required under section 151(ii).
The Tribunal noted that this defect went to the root of jurisdiction and stood squarely covered by the Delhi High Court judgment in Communist Party of India (Marxist) vs. Income Tax Department (28.04.2025), along with a consistent line of authorities including Twylight Infrastructure, Abhinav Jindal HUF, Ganesh Dass Khanna, and supporting decisions of the Bombay, Madras and Orissa High Courts.
Rejecting the Revenue’s reliance on TOLA extensions, the ITAT reiterated that extension of limitation does not dilute or alter the statutory hierarchy of sanctioning authorities under section 151, and approval must strictly conform to the law in force on the date of sanction.
Accordingly, the Tribunal held that the 148A(d) order, consequent notice u/s 148, and the assessment order passed thereafter were all unsustainable in law, rendering the reassessment proceedings null and void. With the jurisdictional issue decided in favour of the Assessee, all issues on merits were held to be academic.
FULL TEXT OF THE ORDER OF ITAT DELHI
