ITAT Mumbai: Reopening Invalid Without Proper Sanction-Approval by Wrong Authority Vitiates Entire Proceedings

Deven Jitendra Mehta Vs ITO (ITAT Mumbai) The Mumbai ITAT quashed reassessment proceedings holding that approval obtained from an incorrect authority renders the entire reopening invalid. In this case, the notice under Section 148 was issued beyond three years from the end of the relevant assessment year. As per Section 151(ii), approval was required from the Principal Chief Commissioner (PCCIT). However, the sanction was obtained only from the Principal Commissioner (PCIT), which is not the competent authority under law. The Tribunal, relying on the Bombay High Court judgment, held that such ...