Agnello Oswin Dias Vs ACIT (Bombay High Court)
The Bombay High Court has quashed a reassessment notice issued to Agnello Oswin Dias for the Assessment Year (AY) 2018-2019, ruling that the sanction for the notice was invalid. The core of the court’s decision centered on a procedural error by the tax authorities: the sanction was granted by the Principal Commissioner of Income Tax (PCIT) instead of the legally required Principal Chief Commissioner of Income Tax (PCCIT).
The petitioner, Agnello Oswin Dias, challenged a notice issued under Section 148 of the Income Tax Act, 1961, and the corresponding order under Section 148A(d), both dated April 22, 2022. The central argument was that the sanctioning authority for these actions was incorrect. Since the notice pertained to AY 2018-2019, and was issued more than three years after the end of that assessment year, it fell under the purview of Section 151(ii) of the Act. This specific provision mandated that for such notices, the sanction must be obtained from the PCCIT. The court confirmed that the sanction was, in fact, issued by the PCIT, Mumbai-5.
The court also noted that a new proviso to Section 151, which became effective on April 1, 2023, was not applicable to the present case because the notice was issued prior to this date. This underscores the legal principle that the validity of a procedural action is determined by the law in force at the time the action is taken.
