Case Law Details
Global Associates Vs DCIT (ITAT Bangalore)
In the instant case, undisputed fact is that the assessee was not earlier assessed to tax for assessment year 2005-06 and hence no assessment order u/s 143(3) of the Act is available. In that situation, the provisions of section 151(2) of the Act is applicable to the facts of the present case, as per which the A.O. is required to obtain approval from Joint Commissioner of Income tax. On the contrary, the A.O. has obtained approval from Ld. Commissioner of Income Tax. The question is whether approval from a superior authority is fatal to the assessment proceedings or not? An identical issue has been examined by Hon’ble High Court of Bombay in the case of Ghanshyam K. Khabrani (supra) and it was held that when 151(2) of the Act mandates that sanction to be taken for issuance of notice u/s 148 of the Act in certain cases has to be of Joint Commissioner, then reopening of assessment with the approval of Commissioner is unsustainable.
FULL TEXT OF THE ORDER OF ITAT BANGALORE
The assessee has filed this appeal challenging the order dated 29.12.2014 passed by Ld. CIT(A)-11, Bengaluru and it relates to assessment year 2005-06. The assessee has raised as many as 18 grounds. At the time of hearing, we heard the parties on ground No.6 which reads as under:
6. The learned Commissioner of Income-tax (Appeals) ought to have appreciated that the notice issued by obtaining prior approval from the learned Commissioner of Income-tax is bad in law and contrary to the provisions of section 151(2) of the Act on the facts and circumstances of the case.
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