Nikhil Maheswari Vs ITO (ITAT Kolkata)
Reopening Beyond 3 Years Quashed – Approval by PCIT Instead of PCCIT u/s 151(ii) Invalid – Jurisdictional Defect Fatal – ITAT Kolkata
ITAT Kolkata quashed reassessment holding that where notice u/s 148 was issued beyond three years, mandatory approval had to be obtained from PCCIT as per Sec 151(ii), whereas AO obtained sanction only from PCIT-5, Kolkata. Tribunal noted that reopening dated 30.07.2022 for AY 2017-18 was clearly beyond limitation period and therefore approval from wrong authority vitiated jurisdiction. Relying on Agnello Oswin Dias (Bom HC), Vodafone Idea Ltd. and other judicial precedents, ITAT held that defect in sanction is not curable and renders notice u/s 148, order u/s 148A(d) and consequent reassessment null and void. Appeal allowed in favour of assessee.
FULL TEXT OF THE ORDER OF ITAT KOLKATA
This is an appeal preferred by the assessee against the order of the National Faceless Appeal Centre, Delhi (hereinafter referred to as the “Ld. CIT(A)”] dated 23.08.2024 for the AY 2017-18.
2. At the outset, we note that the appeal of the assessee is barred by limitation by 281 days. At the time of hearing the counsel of the assessee explained the reasons for delay in filing the appeal. The Ld. D.R did raise objections to the condonation of dealy. After hearing the rival contentions and perusing the materials available on record, we find that the delay is for bonafide and genuine reasons and hence, we condone the delay and adjudicate the appeal in the following paras.
