Niraj Vs ITO (ITAT Delhi)
Wrong Sanction Sinks Reassessment: Delhi ITAT Quashes 148 Notice Issued with PCIT Approval Instead of PCCIT
Delhi ITAT, Delhi Bench ‘E’, in Niraj Vs ITO (ITA No.3308/Del/2025; AY 2018-19; order dated 19-12-2025), quashed the reassessment proceedings on the ground of invalid sanction u/s 151. The Tribunal noted that the notice u/s 148 dated 01-04-2022 was issued beyond three years from the end of the relevant AY and, therefore, mandatory prior approval of the Principal Chief Commissioner of Income Tax (PCCIT) was required under section 151(ii). However, the Assessing Officer had obtained approval only from the Principal Commissioner of Income Tax (PCIT), rendering the notice without jurisdiction.
Relying on binding precedents including CIT vs Gee Kay Finance & Learning Co. Ltd. and Rohit Kumar vs ITO (Delhi HC), the Tribunal held that sanction by an incompetent authority is not a curable defect and vitiates the entire proceedings. Consequently, the 148 notice and the reassessment order were held void ab initio. Having allowed the appeal on this legal issue, the Tribunal left all other grounds—including faceless reassessment, section 148A(b) opportunity & natural justice—open and academic.
FULL TEXT OF THE ORDER OF ITAT DELHI
This appeal filed by the assessee is preferred against the order of the Ld.Commissioner of Income Tax /NFAC, Delhi [herein after referred as “CIT(A)”] dated 01.04.2025 for A.Y. 2018-19.
