Soft Zone Vs DCIT (ITAT Pune)
The assessee filed an appeal before the Income Tax Appellate Tribunal (ITAT), Pune, against the order of the Commissioner of Income Tax (Appeals) [NFAC] for Assessment Year (AY) 2017-18. The principal challenge was to the validity of the reassessment proceedings, including the sanction granted under Section 151, the notice issued under Section 148, and the consequential reassessment order passed under Sections 147 read with 144B of the Income Tax Act. The assessee also challenged the addition of ₹1,08,71,550 as unexplained cash credit under Section 68 in respect of cash deposits made during the demonetisation period and the application of Section 115BBE for taxing the addition at a higher rate.
The assessee submitted that the notice under Section 148 dated 15.07.2022 and the order under Section 148A(d) had been approved by the Principal Commissioner of Income Tax (Pr. CIT)-3, Pune. It argued that since more than three years had elapsed from the end of AY 2017-18, Section 151 required the approval to be granted by the Principal Chief Commissioner of Income Tax (PCCIT) or the Chief Commissioner of Income Tax (CCIT), and not by the Pr. CIT. Accordingly, the assessee contended that the sanction, the notice under Section 148, and the order under Section 148A(d) were invalid in law.
