Sanjay Kumar Vs DCIT (ITAT Delhi)
Reassessment Quashed for Undated PCIT Approval – Invalid Sanction u/s 151 Vitiates Entire Proceedings
The Delhi ITAT allowed the assessee’s appeal and quashed the reassessment for AY 2015-16 on the ground that the mandatory approval granted by the PCIT under Section 151 was undated and therefore legally invalid. The Tribunal noted that both the satisfaction recorded by the Assessing Officer and the approval granted by the PCIT bore signatures but did not contain any date, making it impossible to verify whether sanction was granted prior to issuance of notice under Section 148.
The Revenue failed to produce any material to show that the approval was properly dated or validly granted. Relying on the coordinate bench decision in Sumit Suneja v. ACIT, the Tribunal held that undated approval reflects lack of jurisdictional compliance and absence of proper application of mind, rendering the reopening proceedings void ab initio.
Accordingly, the approval under Section 151 was held invalid and the entire reassessment framed under Sections 147/144B was quashed. The assessee’s appeal was allowed in full.
FULL TEXT OF THE ORDER OF ITAT DELHI
The instant appeal, preferred by the assessee, is directed against the order dated 25.08.2025 [ITBA/NFAC/S/250/2025-26/1079941099(1)], passed by the National Faceless Appeal Centre (NFAC), Delhi, in turn arising out of the order dated 29.03.2022 passed by the National Faceless Assessment Centre, Delhi in proceedings under Section 147 r.w.s. 144B of the Income Tax Act, 1961 (hereinafter referred to as “the Act”), for Assessment Year 2015-16.
