Grant of sanction by the appropriate authority is a precondition for AO to assume valid jurisdiction for issue of 148 notice: Mumbai ITAT
Mumbai ITAT post Rajeev Bansal quashes reassessment procedings for AY 2015-16 as well as for AY 2016-17 & 2017-18
Mumbai ITAT in its recent judgement dt 2nd December,2024 in the case of ACIT vs Manish Financial ITA No 5050 and 5055/Mum/2024 delivered post Rajeev Bansal judgement, has held that Reassessment proceedings for AY2015-16 are barred by limitation as TOLA will not apply to AY 2015-16.
It has concluded that Reassessment proceedings for AY2015-16 are barred by limitation as TOLA will not apply to AY 2015-16.
Takes note of para 19 of the statement made by ASG before Supreme Court “ Revenue concedes that for AY 2015-16 , all notices issued on or after 1st April,2021 will have to be dropped as they will not fall during the period prescribed under TOLA”
On the above reasoning holds that 148 notices issued post Aashish Aggarwal in July,2022 are invalid being barred by limitation. On this basis Asstt for 2015-16 has been quashed.
ITAT in this judgement has also quashed 148 notices for AY 2016-17 and 2017-18 applying para 76 of Rajeev Bansal judgement, whereby Supreme Court has held that grant of sanction by the appropriate authority is a precondition for AO to assume valid jurisdiction for issue of 148 notice. Since approval for these Asstt years 2016-17 and 2017-18 have been obtained by AO in July, 2022 from PCIT, the same is invalid as approval after 3 years was to be obtained from PCCIT as required under section 151. On this basis the Asstt for AY 2016-17 and 2018-18 have also been quashed.
The copy of the order is as under:
