Jag Preet Singh Narang Vs ITO (ITAT Delhi)
Case was reopened for AY 2017-18 by notice u/s 148 dated 22.07.2022, i.e., beyond three years from end of AY. As per law applicable for that period, sanction for such reopening had to be obtained from Principal CCIT/Principal DGIT/CCIT/DGIT. AO, however, obtained approval only from PCIT, as admitted in para 3 of the notice itself. Assessee argued that such approval is incompetent & reopening is void-ab-initio, relying on Delhi HC ruling in Manish Gyanchand Mehta 173 taxmann.com 953. Tribunal held that since sanction was taken from an authority not empowered to approve reopening beyond 3 years, the 148 notice itself is invalid & the entire reassessment collapses. Legal ground accepted; merits rendered academic. Appeal allowed.
FULL TEXT OF THE ORDER OF ITAT DELHI
1. This appeal by assessee is directed against the order of learned CIT(A)/National Faceless Appeal Centre, Delhi dated 21.08.2025 for assessment year (AY) 2017-18.
2. Though, the assessee has raised multiple grounds of appeal, however in my considered view the only substantial grounds of appeal relates to validity of notice under section 148 that sanction/approval is not from competent authority and the addition of Rs.8.00 lakhs under section 68 of the Act, which is on merit.
