Shweta Gadgay Vs ITO (ITAT Bangalore)
Reassessment Quashed for Invalid Sanction: JCIT Not Competent & Unsigned Approval Fatal – ITAT Bangalore
The Bangalore Bench of the ITAT, in Smt. Shweta Gadgay vs. ITO, Ward-1, Bidar (ITA No.2314/Bang/2024, AY 2015-16, order dated 19-12-2025), quashed the entire reassessment proceedings after holding that the sanction u/s 151 was invalid, thereby rendering the notice issued u/s 148 without jurisdiction.
The Tribunal held that since more than four years had elapsed from the end of the relevant assessment year, approval for issuing notice u/s 148 could be granted only by the Principal Chief Commissioner / Chief Commissioner / Principal Commissioner / Commissioner, and not by the Joint Commissioner. In the present case, the sanction was admittedly granted by the JCIT, making it ab initio void.
Further, the Tribunal also noted that the so-called approval u/s 151 was not signed at all, which independently vitiated the reassessment. Relying on the judgment of the Allahabad High Court in Vikas Gupta vs. Union of India (448 ITR 1) and Mumbai ITAT decision in J Kumar Infraprojects Ltd., the Tribunal reiterated that a valid, signed satisfaction must exist at the time of issue of notice, failing which the AO lacks jurisdiction.
Since the reassessment itself was held to be invalid in law, the Tribunal did not adjudicate the additions on merits (including cash deposits treated as unexplained u/s 69A), and allowed the assessee’s appeal purely on legal grounds
FULL TEXT OF THE ORDER OF ITAT BANGALORE
