Rohit Goel Vs DCIT (ITAT Delhi)
The appeal for Assessment Year 2017–18 before the Income Tax Appellate Tribunal, Delhi Bench arose from reassessment proceedings initiated under Sections 147 read with 143(3) of the Income Tax Act, 1961. The primary issue was the validity of the reassessment notice issued under Section 148 dated 29.07.2022, which was issued beyond three years from the end of the relevant assessment year. The Assessing Officer had obtained approval only from the Principal Commissioner of Income Tax (PCIT), Central-2, Delhi.
The Tribunal examined whether such approval satisfied the statutory requirement under Section 151, as amended by the Finance Act, 2021. Relying extensively on binding precedents of the Delhi High Court, including decisions holding that the authority competent to grant sanction depends strictly on whether reassessment is initiated within or beyond three years, the Tribunal noted that where more than three years have elapsed, sanction must be accorded by the Principal Chief Commissioner / Principal Director General or equivalent authority, and not by a PCIT.
The Tribunal further observed that extension of limitation under the Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020 (TOLA) does not alter or dilute the statutory hierarchy or distribution of powers prescribed under Section 151. Judicial authorities have consistently held that TOLA only extends time limits and does not amend the identity of the “specified authority” competent to grant approval.
