Javitri Devi Vs ITO (ITAT Delhi)
In this case before the Income Tax Appellate Tribunal (ITAT), Delhi, the assessee challenged the validity of reassessment proceedings for Assessment Year 2016–17. The dispute centered on whether the notice issued under Section 148 of the Income-tax Act, 1961 was valid in law due to the nature of approval obtained under Section 151(ii).
The reassessment process involved issuance of an initial notice under Section 148 on 25.04.2021, followed by notices under Section 148A(b) on various dates. An order under Section 148A(d) was passed on 26.07.2022, and a fresh notice under Section 148 was issued on 29.07.2022. The assessee contended that since the reassessment notice was issued beyond three years from the end of the relevant assessment year, approval was required from the Principal Chief Commissioner of Income Tax (PCCIT) in terms of the amended provisions of Section 151(ii). However, the Assessing Officer had obtained approval from the Principal Commissioner of Income Tax (PCIT), which was argued to be invalid.
The assessee relied on judicial precedents, including decisions of the Supreme Court and the Delhi High Court, which clarified that for reassessment proceedings initiated beyond three years, approval must be obtained from the specified authority, namely PCCIT. The Delhi High Court had held in similar cases that reassessment proceedings initiated without such approval are not sustainable.
