Tia Enterprises Pvt. Ltd Vs ITO (Delhi High Court)
The Delhi High Court adjudicated a writ petition concerning Assessment Year 2011–12, wherein the petitioner challenged a notice dated 30.03.2018 issued under Section 148 of the Income Tax Act, 1961, as well as an order dated 06.12.2018 disposing of its objections to the reassessment proceedings.
The petitioner assailed the notice and order on the singular ground that reassessment proceedings were initiated without valid approval from the specified authority, as required under the Act. Reliance was placed on Annexure-10, a prescribed form meant for recording reasons under Sections 147/148 and for obtaining approval from the Principal Commissioner of Income Tax (PCIT). The form indicated that reasons for reopening were recorded in Annexure-A. It also showed that approval required a two-stage process: satisfaction by the Additional Commissioner of Income Tax (ACIT) and by the PCIT.
The form revealed that the ACIT recorded satisfaction stating that it was a fit case for issuance of notice under Section 148. However, insofar as the PCIT was concerned, the form contained only a signature without any recorded satisfaction or date. The petitioner contended that this demonstrated a complete absence of application of mind by the PCIT in granting approval.
