Reassessment Notice Issued Beyond 3 Year Invalid Without PCCIT Approval u/s 151(ii): ITAT Sets Aside Order [Read Order]
ITAT held that reassessment notices issued beyond three years require approval from PCCIT.
![Reassessment Notice Issued Beyond 3 Year Invalid Without PCCIT Approval u/s 151(ii): ITAT Sets Aside Order [Read Order]](https://images.taxscan.in/h-upload/2026/03/28/2130567-reassessment-notice-issued-beyond-3-yearjpg.webp "Reassessment Notice Issued Beyond 3 Year Invalid Without PCCIT Approval u/s 151(ii): ITAT Sets Aside Order [Read Order]")
The Income Tax Appellate Tribunal (ITAT), Delhi Bench, held that reassessment proceedings initiated under Section 148 ofthe Income Tax Act, 1961 are invalid when the mandatory approval under Section 151(ii) is not obtained from the Principal Chief Commissioner of Income Tax (PCCIT). The appellant, Javitri Devi, challenged reassessment proceedings for Assessment Year (AY) 2016-17...
The Income Tax Appellate Tribunal (ITAT), Delhi Bench, held that reassessment proceedings initiated under Section 148 ofthe Income Tax Act, 1961 are invalid when the mandatory approval under Section 151(ii) is not obtained from the Principal Chief Commissioner of Income Tax (PCCIT).
The appellant, Javitri Devi, challenged reassessment proceedings for Assessment Year (AY) 2016-17 on the ground that the notice issued under section 148 of Income Tax Act was without valid sanction.
S.C. Garg, the counsel for the appellant, contended that the notice was issued beyond three years from the end of the relevant assessment year, approval ought to have been obtained from the PCCIT but the Assessing Officer (AO) had obtained approval only from the PrincipalCommissioner of Income Tax (PCIT).
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Rajesh Kumar Dhanesta, representing the Revenue Department relied upon the orders of the lower authorities and supported the validity of the reassessment proceedings.
Sudhir Kumar, Judicial Member and Rifaur Rahman, Accountant Member observed that the notice under Section 148 dated 29.07.2022 had been issued after obtaining approval from the PCIT only, which was not in accordance with the mandate of Section 151(ii).
The Tribunal held that in cases where reassessment is initiated beyond three years, approval must be obtained from the PCCIT or the specified higher authority.
The Tribunal relied on the decision of the Supreme Court in Union of India v. Rajeev Bansal (2024) and the Delhi High Court in Rajesh Gupta (HUF) v. ACIT (2023) and held that non-compliance with the statutory requirement of approval renders the reassessment proceedings unsustainable in law.
Accordingly, the Tribunal set aside the reassessment order and allowed the appeal of the appellant.
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