Reassessment Notice after 4 Years should have the Sanction Of PCIT: Bombay High Court
Live LawThe Bombay High Court ruled that issuing a reassessment notice after four years is subject to the approval of the Principal Chief Commissioner of Income-tax.The division bench of Justice Dhiraj Singh Thakur and Justice Kamal Khata has ruled that the approval for the issuance of a notice under Section 148 ought not to have been obtained from the Additional Commissioner of Income Tax. The Bombay High Court ruled that issuing a reassessment notice after four years is subject to the approval of the Principal Chief Commissioner of Income-tax. The division bench of Justice Dhiraj Singh Thakur and Justice Kamal Khata has ruled that the approval for the issuance of a notice under Section 148 ought not to have been obtained from the Additional Commissioner of Income Tax but from the authority specifically mentioned under Section 151 of the Income Tax Act. The petitioner/assessee challenged the notice dated March 31, 2021, under Section 148 of the Income Tax Act, 1961, on the grounds that it was issued after the four-year period, which required approval from the Principal Chief Commissioner of Income-tax under Section 151 of the Act.