Ankita Lokesh Goyal Vs ITO (ITAT Delhi)
Income Tax Appellate Tribunal (ITAT) Delhi has invalidated a reassessment order for Assessment Year 2016-17 in the case of Ankita Lokesh Goyal vs. ITO. The Tribunal ruled that the reassessment proceedings were void ab initio because the Assessing Officer (AO) obtained sanction from the Principal Commissioner of Income Tax instead of the statutorily required Principal Chief Commissioner of Income Tax, as mandated by Section 151 of the Income Tax Act, 1961. This decision highlights the critical importance of adhering to procedural requirements, particularly concerning the hierarchy of approval for reopening assessments.
The assessee had challenged the reassessment order, arguing it was unlawful and passed without proper authority. The core of the appeal hinged on the validity of the sanction obtained for issuing the notice under Section 148 of the Act. For AY 2016-17, the reassessment notice was issued on July 16, 2022, which is more than three years from the end of the relevant assessment year. According to Section 151(ii) of the Act, if more than three years have elapsed from the end of the relevant assessment year, the sanction for initiating reassessment proceedings must be obtained from the Principal Chief Commissioner or Principal Director General. However, in this case, the AO secured approval from the Principal Commissioner of Income Tax on July 15, 2022.
