Reassessment Quashed for Invalid Sanction u/s 151: Approval by PCIT Instead of PCCIT Held Void

Reshma Harbakhsh Singh Vs DCIT (ITAT Delhi) The Delhi Bench of the ITAT allowed the assessee’s appeal for AY 2018-19 and quashed the reassessment proceedings initiated u/s 147/148, holding that the mandatory sanction u/s 151 was obtained from an incompetent authority. After 01.04.2021, where more than three years have elapsed from the end of the relevant AY, the statute requires prior approval of the PCCIT/CCIT under section 151(ii). In the present case, the notice dated 04.04.2022 was issued on the basis of approval granted by the PCIT, which was contrary to the express mandate of law. Rely...