Issue before court:
Whether CIT can give approval for initiating proceeding u/s 147 in place of JCIT who is prescribed authority to give such approval u/s 151 (2) of the Income-tax Act.
Brief facts:
- For AY2002-03, assessment was framed under Section 143(1).
- Based upon information received by the AO, a satisfaction note was recorded sometime in early 2009 and a notice was issued in 25.03.2009 i.e. four years beyond the end of the assessment year. Since the case was reopened after expiry of four years approval for initiating proceedings u/s 147 was taken from jurisdictional CIT.
- The re-assessment proceedings were completed on 31.12.2009.
Contention of the revenue:
- Section 292B of the Act precluded the assessee to take objection of jurisdictional infirmity of the notice. Reliance was taken upon a Division Bench ruling in Commissioner of Income Tax V. S.P.L’s Siddhartha Ltd. (2012) 345 ITR 223.
- ITAT fell into error and relies upon the proviso to Section 151(1) to say that in all cases where re-assessment is proposed, the approval of the highest authorities such as the Principal Chief Commissioner, Principal Commissioner or the Commissioner, is essential and that in the facts of this case such authorization had, in fact, been secured prior to issuance of notice.
Contention of the assessee:
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