Reassessment Void Ab Initio for Lack of Statutory Sanction: ITAT Mumbai Allows Saif Ali Khan’s Appeal
Saif Ali Mansoor Ali Khan Pataudi (2025 TAXSCAN (ITAT) 1677)
Facts:
1. The Assessing Officer (AO) issued a notice u/s 148 to reopen the assessment. The reassessment sought to make additions/disallowances, including a disallowance of TDS credit of about ₹50 lakh.
2. The assessee argued that the reopening was invalid because the AO had reopened the case beyond 3 years from the end of the relevant AY. Under Section 151(1), such reopening requires approval from the Principal Chief Commissioner of Income Tax (PCCIT).
3. In this case, however, the approval was granted only by the Principal Commissioner of Income Tax (PCIT).
ITAT Mumbai held as under:
1. The statute mandates strict compliance with the approval requirement under Section 151. For cases reopened after 3 years, approval of the PCCIT is mandatory.
2. Since such approval was not obtained, the jurisdictional defect renders the notice void ab initio. So, the reassessment notice and proceedings were quashed.
3. Appeal of Saif Ali Khan allowed; reassessment struck down on account of defective sanction.
The copy of the order is as under:
