Nikhil Chandrakant Dharia Vs ITO (Bombay High Court)
Summary: The Bombay High Court considered a writ petition challenging a notice dated 28 March 2023 issued under Section 148A(b) of the Income-tax Act, 1961, an order dated 19 April 2023 passed under Section 148A(d), and the consequential notice dated 19 April 2023 issued under Section 148. The assessment year involved was 2019-20. The Court’s order records that the principal grounds raised by the petitioner concerned non-application of mind in granting approval under Section 151 and denial of a requested personal hearing before the order under Section 148A(d) was passed.
Read SC Judgment in this case: SC Dismisses Delayed SLP Against Reassessment Quashing Under Sections 148A and 151
The Court noted that the notice under Section 148A(b) was dated 28 March 2023 and related to AY 2019-20, and therefore fell within three years. The Court recorded that the petitioner did not dispute that the Principal Commissioner of Income Tax was the appropriate authority for granting sanction in such circumstances. The petitioner’s grievance was instead that the Principal Commissioner had not applied his mind while granting approval.
In the form submitted for approval under Section 151, the time limit for the proceedings was stated to be covered under Section 149(1)(b), namely, proceedings for more than three years but not more than ten years. The Court observed that the notice was actually issued within three years and therefore the applicable provision should have been Section 149(1)(a). The Court further noted that if Section 149(1)(b) were applicable, approval could be granted only by the Principal Chief Commissioner and not by the Principal Commissioner.
