Jurisdictional Misfire -Wrong Sanction Sinks Reopening: PCIT Approval Not Enough Beyond 3 Years

DCIT Vs Sameep Fabrics Pvt. Ltd. (ITAT Ahmedabad) Revenue appealed against deletion of addition on alleged accommodation-entry purchases, while Assessee filed cross-objections challenging the very jurisdiction of reopening. Tribunal noted that notices u/s 148 for both AYs 2017-18 & 2018-19 were issued beyond three years & approvals were granted only by PCIT. As per section 151(ii), when more than three years have elapsed, sanction must be from Principal Chief Commissioner or Chief Commissioner, and approval by PCIT is invalid. Tribunal held that the statutory mandate was violated &...