Paresh Hiralal Shah Vs ITO (ITAT Mumbai)
The appeal was filed by the assessee against the order dated 20.06.2025 passed by the National Faceless Appeal Centre (NFAC)/Commissioner of Income Tax (Appeals) under section 250 of the Income Tax Act, 1961 for Assessment Year (AY) 2018–19.
In this case, a notice under section 148A(d) of the Act was issued within three years from the end of the relevant assessment year. However, it was an admitted position that the notice under section 148 of the Act was issued after the expiry of three years from the end of the relevant assessment year. As a result, the provisions of section 151(ii) of the Act became applicable with respect to the authority competent to grant sanction for issuance of the notice under section 148.
The Tribunal noted that where a notice under section 148 is issued beyond three years from the end of the relevant assessment year, the sanction must be obtained from the authority specified under section 151(ii), namely the Principal Chief Commissioner or Principal Director, or where such posts do not exist, the Chief Commissioner or Director General. In the present case, sanction was taken from the Principal Commissioner of Income Tax (PCIT), and not from the Principal Chief Commissioner of Income Tax (PCCIT), who was the competent authority under the statute.
