Somnath Kannure Vs ITO (ITAT Pune)
The decision of the Income Tax Appellate Tribunal, Pune Bench, concerns the validity of reassessment proceedings initiated under Sections 148 and 148A(d) of the Income Tax Act for Assessment Year 2017–18. The assessee, a proprietor engaged in a grocery business for over twenty years, had originally filed the return of income on 07/11/2017. Subsequently, reassessment proceedings were initiated through notice under Section 148 dated 28/07/2022, along with an order under Section 148A(d) of the same date, approved by the Principal Commissioner of Income Tax, Pune.
The primary legal issue before the Tribunal was whether such approval was valid when the notice was issued after the expiry of three years from the end of the relevant assessment year. The Tribunal examined Section 151 of the Act, which prescribes that where more than three years have elapsed, approval must be obtained from a higher authority, namely the Principal Chief Commissioner or Chief Commissioner of Income Tax, as per Section 151(ii). In the present case, approval had been granted by the Principal Commissioner, which falls under Section 151(i), applicable only within three years.
The Tribunal relied on multiple judicial precedents, including decisions of the Bombay High Court, Madras High Court, ITAT Mumbai, and earlier rulings of ITAT Pune. These decisions consistently held that obtaining approval from an incorrect authority renders the reassessment proceedings invalid, as such approval is a jurisdictional precondition. The Tribunal noted that non-compliance with Section 151(ii) directly affects the Assessing Officer’s jurisdiction to issue a notice under Section 148.
