Mita Vora Vs ITO (ITAT Mumbai)
ITAT Mumbai Quashes Reopening: Approval by Wrong Authority u/s 151 Makes Entire Reassessment Void
In a decisive ruling, the ITAT Mumbai held that reassessment proceedings are invalid if approval under Section 151 is obtained from the wrong authority, and accordingly quashed the entire reassessment.
The case involved reopening beyond 3 years from the end of the assessment year, where law mandates approval from Principal Chief Commissioner (PCCIT). However, approval was taken from Principal Commissioner (PCIT).
The Tribunal held:
- Sanction under Section 151 is a jurisdictional requirement, not a procedural formality.
- Approval by an incorrect authority renders the notice under Section 148 invalid and non-est.
- Consequently, entire reassessment proceedings collapse.
The Tribunal relied on:
- Coordinate bench rulings in identical cases
- Bombay High Court decision emphasizing strict compliance with sanction requirements
Since the notice itself was invalid, the Tribunal did not examine merits (Section 56 addition).
Result:
- Notice u/s 148 quashed
- Entire reassessment set aside
Bottom line:
A powerful jurisdictional ruling-wrong approval = no reopening, reinforcing that Section 151 compliance is mandatory and fatal if violated.
FULL TEXT OF THE ORDER OF ITAT MUMBAI
This appeal is filed by the assessee against the order dated 25.11.2025 passed by the Ld. Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi[hereinafter referred to as “CIT(A)”], under section 250 of the Income Tax Act, 1961[hereinafter referred to as “the Act”] for A.Y. 2017–18, arising out of the assessment order dated 23.05.2023 passed by the Assessing Officer under section 147 r.w.s. 143(3) r.w.s. 144B of the Act.
