Sheikh Ikbal Husen Vs Assessment Unit ITO (ITAT Dehradun)
Reopening Quashed – Approval u/s 151 by PCIT Instead of CCIT Held Invalid – ITAT Dehradun Sets Aside Assessment
The ITAT Dehradun allowed the assessee’s appeal and quashed reassessment proceedings after holding that approval for issuing notice u/s 148 was granted by an incompetent authority. The Tribunal noted that approval u/s 151 was given by the PCIT, whereas CBDT instructions mandated approval by the CCIT in such cases.
Relying on coordinate bench ruling in Kavita Sharma, the Tribunal observed that when statutory approval is defective, the notice issued u/s 148 itself becomes invalid, and consequently the reassessment order cannot survive. Since the reopening was based on such defective sanction, both the assessment order and CIT(A)’s order were set aside.
Accordingly, the appeal of the assessee was allowed and the reassessment proceedings were quashed in entirety
FULL TEXT OF THE ORDER OF ITAT DEHRADUN
The present appeal is filed by the Assessee against the order of Ld.
Commissioner of Income Tax (Appeals)/National Faceless Appeal Centre (‘Ld. CIT(A)/NFAC’ for short), New Delhi dated 25/08/2025for the Assessment Year 2013-14.
2. The Ld. Counsel for the Assessee arguing on Additional Ground No. 1 of Appeal, submitted that the approval dated 31/03/2021 issued u/s 151 of the Act has been granted by the PCIT instead of CCIT. The Ld. Counsel relying on the order of the Co-ordinate Bench of the Tribunal dated 10/12/2024 in ITA No. 3720/Del/2024 in the case of Kavita Sharma Vs. Income Tax officer and also the CBDT Instruction dated 04/03/2021, sought for allowing the additional grounds of Appeal.
