INCOME TAX OFFICER WARD 2(2) KALYAN, KALYAN V. SAMRAT MADHAV PAIKRAO, SHAHPUR

ITA 4759/MUM/2025

AI Insights

This case involves an appeal by the Income Tax Officer against a decision by the CIT(A), which had deleted an addition made by the AO. The addition was initially based on information that led to the reopening of the case for the assessment year 2018-19. The primary legal contention was the validity of the notice issued under section 148 of the Income Tax Act, 1961, which was challenged by the assessee. The notice was found to be invalid as it was issued with the prior approval of the wrong authority, contrary to the requirements of Section 151 of the Act. The tribunal, referencing a decision by the Bombay High Court, held that the sanctioning authority must be the PCCIT, not the PCIT, as was done in this case.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 781205 (ITAT-MUMBAI)
• Duration Of Justice: 2 month(s) 25 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-10-2025
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: F
• Assessment Year: 2018-2019
• Appeal Filed On: 28-07-2025
• Other Referred Cases: Vodafone Idea Limited vs. DCIT, Siemens Financial Services Private Limited Vs. Deputy Commissioner of Income Tax & Ors.
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: KAVITHA KAUSHIK; DR
• Assessee Lawyers: SHRIRAM BAJAJ; AR
• Keywords: Set aside
• Section: 148

Judgement Text

" | आयकर अपीलीय अिधकरण ा यपीठ, मुंबई | IN THE INCOME TAX APPELLATE TRIBUNAL “F” BENCH, MUMBAI BEFORE SHRI SAKTIJIT DEY, HON’BLE VICE PRESIDENT & SHRI NARENDRA KUMAR BILLAIYA, HON’BLE ACCOUNTANT MEMBER I.T.A. No. 4759/Mum/2025 Assessment Year: 2018-19 Income Tax Officer, Ward – 2(2), Kalyan Vs Samrat Madhav Paikrao 1982, Veer Sambhaji Nagar Near Z P Girl School Asangaon, Shahpur Thane - 421301 [PAN: CYMPP7580E] अपीला थ\u0016/ (Appellant) \u0018\u0019 यथ\u0016/ (Respondent) C.O. No. 245/Mum/2025 Assessment Year: 2018-19 Samrat Madhav Paikrao 1982, Veer Sambhaji Nagar Near Z P Girl School Asangaon, Shahpur Thane - 421301 [PAN: CYMPP7580E] Vs Income Tax Officer, Ward – 2(2), Kalyan अपीला थ\u0016/ (Appellant) \u0018\u0019 यथ\u0016/ (Respondent) Assessee by : Shri Shriram Bajaj, A/R Revenue by : Ms. Kavitha Kaushik, Sr. D/R सुनवाई की तारीख/Date of Hearing : 13/10/2025 घोषणा की तारीख /Date of Pronouncement : 16/10/2025 आदेश/O R D E R PER NARENDRA KUMAR BILLAIYA, AM: This appeal by the revenue and cross-objection by the assessee are preferred against the order dated 29/05/2025 by NFAC, Delhi [hereinafter ‘the ld. CIT(A)’], pertaining to AY 2018-19. 2. The sum and substance of the grievance of the revenue is that the ld. CIT(A) erred in deleting the addition made by the AO by holding that the AO has not taken any efforts to independently verify the Printed from counselvise.com I.T.A. No. 4759/Mum/2025 C.O. No. 245/Mum/2025 2 impugned information based on which the case was reopened and the addition was made and further erred in holding that the AO has failed to bring any evidence with regard to the nature of information. 2.1. In its cross-objection, the assessee has challenged the validity of the notice dated 05/04/2022 u/s 148 of the Act claiming the same to be invalid and bad in law inasmuch as the same was issued with prior approval of the ld. PCIT, Thane -1 instead of PCCIT as per the mandate of Section 151 of the Act. 2.1. Since the cross-objection raised by the assessee goes to the root of the matter, we adjudicate it first. 3. Vide notice dated 03/04/2022 issued u/s 148 of the Act, the AO proposed to assess/re-assess the income of the assessee. The notice read as under:- 3.1. Since the impugned assessment year is AY 2018-19 and the notice u/s 148 of the Act is dated 05/04/2022, the same has been issued after the lapse of three years. Therefore, the ratio laid down by the Hon’ble Printed from counselvise.com I.T.A. No. 4759/Mum/2025 C.O. No. 245/Mum/2025 3 High Court of Bombay in the case of Vodafone Idea Limited vs. DCIT in W.P. No. 2768 of 2022, order dated 06/02/2024, squarely apply. The operative part of the order of the Hon’ble Jurisdictional High Court read as under:- “3. The impugned order and the impugned notice both dated 7th April 2022 state that the Authority that has accorded the sanction is the PCIT, Mumbai 5. The matter pertains to Assessment Year (\"AY\") 2018-19 and since the impugned order as well as the notice are issued on 7\" April 2022, both have been issued beyond a period of three years. Therefore, the sanctioning authority has to be the PCCIT as provided under Section 151 (i) of the Act. The proviso to Section 151 has been inserted only with effect from 1 April 2023 and, therefore, shall not be applicable to the matter at hand. 4. In this circumstances, as held by this Court in Siemens Financial Services Private Limited Vs. Deputy Commissioner of Income Tax & Ors. the sanction is invalid and consequently, the impugned order and impugned notice both dated 7' April 2022 under section 148A(d) and 148 of the Act are hereby quashed and set aside.” 4. Respectfully following the binding decision of the Hon’ble Jurisdictional High Court (supra), we hold that the sanction is invalid and consequentially the impugned order and the impugned notice are hereby quashed and set aside. Since we have quashed the impugned order, we do not find it necessary to delve into the merits of the case. Accordingly, the ground/s of appeal raised by the assessee in its cross- objection are allowed. Consequently, appeal of the revenue which involves the issues on merits, is dismissed as infructuous. 5. In the result, appeal of the revenue is dismissed and cross- objection filed by the assessee is allowed. Order pronounced in the Court on 16th October, 2025 at Mumbai. Sd/- Sd/- (SAKTIJIT DEY) (NARENDRA KUMAR BILLAIYA) VICE PRESIDENT ACCOUNTANT MEMBER Mumbai, Dated 16/10/2025 *SC SrPs *SC SrPs *SC SrPs *SC SrPs Printed from counselvise.com I.T.A. No. 4759/Mum/2025 C.O. No. 245/Mum/2025 4 आदेश की \u0015ितिलिप अ\u001aेिषत/Copy of the Order forwarded to : 1. अपीलाथ / The Appellant 2. \u0015 थ / The Respondent 3. संबंिधत आयकर आयु\" / Concerned Pr. CIT 4. आयकर आयु\")अपील (/ The CIT(A)- 5. िवभागीय \u0015ितिनिध ,आयकर अपीलीय अिधकरण, मुंबई /DR,ITAT, Mumbai, 6. गाड& फाई/ Guard file. आदेशानुसार/ BY ORDER TRUE COPY Assistant Registrar आयकर अपीलीय अिधकरण ITAT, Mumbai Printed from counselvise.com "