ITAT Delhi Quashes Reassessment Due to Invalid Approval Under Section 151:

ITAT Delhi Quashes Reassessment Due to Invalid Approval Under Section 151 The Income Tax Appellate Tribunal (ITAT), Delhi, has quashed reassessment proceedings after observing that the approval was obtained from the wrong authority under the Income Tax Act.

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The case of the assessee, Samunder Saree Centre, was reopened for assessment under the Income Tax Act after obtaining approval from the Principal Commissioner of Income Tax (PCIT) under section 151. However, this reopening was initiated after the expiry of three years from the end of the relevant assessment year. Therefore, the assessee argued that in such a case, the approval for reopening the case should have been obtained from PCCIT.

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The matter reached the ITAT. The Tribunal observed that since the mandatory approval was taken from an incorrect authority, the reassessment proceedings were invalid. It relied on previous judgements of the Delhi High Court, which supported this view. As a result, the entire reassessment order and the proceedings were quashed.