Krish Road Carriers Private Limited Vs ITO (ITAT Delhi)
An Undated, Unsigned “Approved” Is Not Approval: Reassessment Quashed for Invalid Sanction u/s 151
Background: Krish Road Carriers Pvt. Ltd. challenged reassessment proceedings completed for AY 2012-13. During the hearing before the Tribunal, the assessee raised an additional legal ground contending that the notice u/s 148 had been issued without obtaining valid approval from the specified authority u/s 151.
The additional ground had not formed part of the original memorandum of appeal. However, it involved a pure question of law, arose from the material already available on record & went to the root of the AO’s jurisdiction.
The Revenue did not object to its admission. Following NTPC Ltd. v. CIT, 229 ITR 383, the Tribunal admitted the ground for adjudication.
Two Approvals, but Was Either One Valid?
The relevant assessment year was AY 2012-13, while notice u/s 148 was issued on 22.03.2019. Since the proposed reopening fell within the category requiring sanction from the prescribed higher authority, valid satisfaction of the Pr. CIT was a condition precedent.
The assessee pointed out that the reopening proposal appeared to have travelled through two authorities—the Addl. CIT-14, New Delhi & the Pr. CIT, Delhi-5.
