Linkedin Singapore PTE. Ltd. Vs ACIT (Bombay High Court)
The case before the Bombay High Court concerned the validity of approval granted under Section 151 of the Income Tax Act, 1961 for initiating reassessment proceedings for Assessment Year 2019–20. The Court observed that the facts were similar to a prior decision in Kartik Sureshchandra Gandhi v. Assistant Commissioner of Income Tax. In the present case, the approval form indicated in Box-9 that the proceedings were covered under Section 149(1)(b), i.e., beyond three years but within ten years.
Read SC Judgment in this case: SC Upholds Quashing of Section 148 Notice for Invalid Section 151 Approval in Linkedin Case
The petitioner contended that in such cases, approval must be granted by the Principal Chief Commissioner of Income Tax. However, the approval was granted by a Commissioner of Income Tax (CIT), which was argued to be invalid due to lack of jurisdiction.
The Revenue submitted that the entry in Box-9 was system-generated based on relevant dates. The Court noted that even if this explanation was accepted, the approving authority was required to verify the correctness of the form and either return it for correction or record remarks. The absence of such action indicated lack of due application of mind.
