Bindu Rani Vs ITO (ITAT Delhi)
Approval After Action? Reopening Goes Out of Fashion! – ITAT Quashes 148 Notice Issued Two Days Before Sanction- ITAT Holds Approval Obtained Later Invalidates Proceedings
ITA Nos.4037 & 4054/Del/2024 | AY 2017-18 | Order dt. 27-08-2025
Assessee challenged reassessment & penalty orders passed u/s 147 r.w.s. 144 & 271AAC(1). Her main contention was that the notice u/s 148 dated 28-03-2021 (3:30 PM) was issued before obtaining the mandatory sanction u/s 151, which was granted only on 30-03-2021 (12:14 PM) by the Additional Commissioner.
Tribunal examined the record & found this factual claim undisputed. It held that issuance of a notice prior to the statutory approval is void ab initio, as approval is a precondition for valid reopening under Section 147. Since the notice lacked legal backing at the time of issuance, the entire reassessment proceeding was invalid in law.
Accordingly, the Tribunal quashed the reopening, rendering other grounds on merits academic. Consequently, the penalty appeal also stood allowed as a corollary.
FULL TEXT OF THE ORDER OF ITAT DELHI
These assessee’s twin appeals ITA Nos. 4037& 4054/Del/2024 for A.Y. 2017-18 arise against National Faceless Appeal Centre (NFAC), New Delhi’s as many orders DIN & Order No. ITBA/NFAC/S/250/2023-24/1058278959(1) dated 28.11.2023 & DIN & Order No. ITBA/NFAC/S/250/2023-24/1059988836(1) dated 22.01.2024, in proceedings u/s 147 r.w.s. 144 and 271AAC(1) of the Income-tax Act, 1961, hereinafter referred to as the ‘Act’, respectively.
