December 2022
Reassessment — Jurisdiction — Condition precedent — Approval of prescribed authority — Recording satisfaction with signature of prescribed authority mandatory — Prescribed authority’s digitally signed approval obtained after issue of notice without recording of satisfaction — AO had no jurisdiction at point of time of issue of notice — Notice without jurisdiction and invalid — Notice and subsequent reassessment proceedings quashed.
By K. B. Bhujle, Advocate
61. Vikas Gupta vs. UOI
[2022] 448 ITR 1 (All.)
A.Ys.: 2013-14, 2014-15, 2015-16
Date of order: 8th September, 2022
Ss. 147, 148, 151 and 282A of ITA,1961
Reassessment — Jurisdiction — Condition precedent — Approval of prescribed authority — Recording satisfaction with signature of prescribed authority mandatory — Prescribed authority’s digitally signed approval obtained after issue of notice without recording of satisfaction — AO had no jurisdiction at point of time of issue of notice — Notice without jurisdiction and invalid — Notice and subsequent reassessment proceedings quashed.In a batch of writ petitions before the Allahabad High Court, the admitted facts were that on the basis of an unsigned alleged digital approval u/s 151 of the Income-tax Act, 1961, the AO issued notices to the assessees u/s 148. The point of time when the aforesaid approval u/s 151 was signed is subsequent to the issuance of notices by the AO u/s 148.
The Allahabad High Court held as under:
“i) According to the provisions of section 151 of the Income-tax Act, 1961 an Assessing Officer gets jurisdiction to issue notice to an assessee u/s. 148 to reopen the assessment u/s. 147 after the Principal Chief Commissioner or Chief Commissioner or Principal Commissioner or Commissioner is satisfied on the reasons recorded by the Assessing Officer that it is a fit case for issuing such notice. Section 151 specifically pr
