Manisha Nitin Brahmbhatt National Faceless Assessment Centre (ITAT Mumbai)
Income Tax Appellate Tribunal (ITAT), Mumbai Bench, has allowed an appeal by assessee Manisha Nitin Brahmbhatt, quashing a reassessment notice and subsequent proceedings for Assessment Year (AY) 2017-18. The Tribunal found that the notice issued under Section 148 of the Income Tax Act, 1961, lacked the mandatory prior approval from the appropriate authority as stipulated by Section 151(ii) of the Act.
The assessee had challenged the reopening of the assessment on two grounds: firstly, the legality of the Section 148 notice, and secondly, the merits of an addition of Rs. 3,77,29,617/- made under Section 68 of the Act.
During the proceedings, the assessee’s counsel introduced a new plea, contending that the Section 148 notice was not approved by the correct authority as required by Section 151 of the Act.
The factual background indicated that the assessee, an individual, filed a return of income for AY 2017-18. Based on information received from ACIT Central Circle – 2(1), Mumbai, the case was reopened, and a notice under Section 148 was issued on July 27, 2022. This notice explicitly stated it was issued after obtaining prior approval from the Principal Commissioner of Income Tax (Pr. CIT-20), Mumbai, dated July 24, 2022.
