H And M Hennes And Mauritz Retail Private Limited Vs ACIT (Delhi High Court)
Prior Approval U/S 151 Mandatory for Notices U/S 148 Issued Beyond 3 Years, Even Under Extended TOLA Timelines
Delhi High Court held that prior approval u/s. 151 for issuance of notice under section 148 of the Income Tax Act beyond period of three years mandatory even in case of extended limitation under TOLA. Accordingly, notice and order thereon set aside.
Facts- The petitioner has filed the present petition, inter alia, impugning a notice dated 30.07.2022 issued under Section 148 of the Income Tax Act, 1961 for the Assessment Year 2017-18. Notably, the petitioner has assailed the said notice and the proceedings initiated pursuant thereto on the basis that the notice is invalid as it was not issued with the prior approval of the authorities specified under Section 151(ii) of the Act.
Conclusion- This Court has consistently held that TOLA would have no relevance for determining the specified authority whose approval was mandatory under Section 151 of the Act for issuance of a notice under Section 148 of the Act.
Held that the said notice that it was not issued with the prior approval of the Principal Chief Commissioner of Income Tax (PCCIT) or any other authority specified under Section 151(ii) of the Act. Such approval is mandatory for issuance of a notice issued under Section 148 of the Act beyond the period of three years from the end of the relevant assessment year. Thus, the impugned notice is liable to be set aside on this ground alone. The impugned notice is, accordingly, set aside. Thus, proceedings initiated pursuant to the said notice are also set aside.
