KAVITA SATISH SETHI,POWAI MUMBAI V. INCOME TAX OFFICER WARD 41 1 2 MUMBAI , MUMBAI

ITA 2165/MUM/2025

AI Insights

Ms. Kavita Satish Sethi appealed against the order passed by the National Faceless Appeal Center (NFAC)/Commissioner of Income Tax (Appeals), which was related to the assessment year 2017-18. The core issue in the appeal was the legality of a notice issued under section 148 of the Income Tax Act, 1961, for reopening the assessment after three years from the end of the relevant assessment year. The notice was issued with the approval of the Pr. CIT-17, Mumbai, but not from the Pr. CCIT as mandated by section 151 of the Act. The tribunal, referencing the Supreme Court's decision in National Thermal Power Corporation Ltd. vs. CIT, allowed the legal issue to be raised at this stage and quashed both the notice and the subsequent assessment order.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 712733 (ITAT-MUMBAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-07-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Assessment Year: 2017-2018
• Other Referred Cases: National Thermal Power Corporation Ltd. vs. CIT (1998) 97 Taxman 358 (SC)
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: HEMANSHU JOSHI; LD.
• Assessee Lawyers: JITENDRA SINGH; LD
• Keywords: Question of law; Reopening of assessment
• Section: 147; 148

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL, MUMBAI BENCH “E”, MUMBAI BEFORE SHRI NARENDER KUMAR CHOUDHRY, JUDICIAL MEMBER AND SHRI PRABHASH SHANKAR, ACCOUNTANT MEMBER ITA No.2165/M/2025 Assessment Year: 2017-18 Ms. Kavita Satish Sethi, 1004 Glain Classic, Click Avenue, Hiranandani Powai, Mumbai Maharashtra – 400 076 PAN: ADFPS2219D Vs. National Faceless Appeal Centre (NFAC), North Block, New Delhi - 110001 (Appellant) (Respondent) Present for: Assessee by : Shri Jitendra Singh, Ld. A.R. Revenue by : Shri Hemanshu Joshi, Ld. Sr. D.R. Date of Hearing : 23.07.2025 Date of Pronouncement : 29.07.2025 O R D E R Per : Narender Kumar Choudhry, Judicial Member: This appeal has been preferred by the Assessee against the order dated 30.01.2025, impugned herein, passed by the National Faceless Appeal Center (NFAC)/ Ld. Commissioner of Income Tax (Appeals) (in short Ld. Commissioner) u/s 250 of the Income Tax Act, 1961 (in short ‘the Act’) for the A.Y. 2017-18. 2. The Assessee has raised the legal issue pertaining to the issuing of notice u/s 148 of the Act not being sanctioned by the Specified Authority, as enshrined in section 151 of the Act and as applicable to the case of the Assessee, first time before this Court and therefore the Ld. DR has claimed that such issue cannot be Printed from counselvise.com ITA No.2165/M/2025 Ms. Kavita Satish Sethi 2 allowed to be raised before the Tribunal first time, without being challenging the same before the authorities below. Admittedly, the Assessee has not filed any application for raising this particular legal issue, however, it is the mandate of the law as enshrined/promulgated by the Hon’ble Apex Court in National Thermal Power Corporation Ltd. vs. CIT (1998) 97 Taxman 358 (SC) to the effect “that Tribunal has jurisdiction to examine a question of law, which arises from the facts as found by the authorities below and having a bearing on the tax liability of the Assessee”. Thus, by considering the peculiar facts and circumstances, as the legal issue raised by the Assessee emanates from the orders passed by the Authorities below and goes to the root of the case, we are inclined to allow the Assessee to raise this legal issue for adjudication. 3. Coming to the legal ground raised by the Assessee qua issuance of notice u/s 148 of the Act without getting sanction from Specified Authority, as empowered by section 151 of the Act, we observe that in this case, admittedly, the case of the Assessee was reopened u/s 147 of the Act, after elapsing of three years from the end of the relevant assessment year and by issuing notice dated 31.07.2022 taking approval from the Pr. CIT-17, Mumbai but not from the Pr. CCIT as mandated in section 151 of the Act and thus violated the statutory provisions enshrined in section 151 of the Act, which prescribes Specified authority for granting sanction for reopening of assessment proceedings and/ or issuing notice u/s 148 of the Act. Thus, notice dated 31.07.2022 and the assessment order dated 18.05.2023 u/s 147 r.w.s. 144B of the Act passed in pursuance to the aforesaid notice, are liable to be quashed, thus, the same are quashed. Printed from counselvise.com ITA No.2165/M/2025 Ms. Kavita Satish Sethi 3 4. In the result, appeal filed by the Assessee is allowed. Order pronounced in the open court on 29.07.2025. Sd/- Sd/- (PRABHASH SHANKAR) (NARENDER KUMAR CHOUDHRY) ACCOUNTANT MEMBER JUDICIAL MEMBER * Kishore, Sr. P.S. Copy to: The Appellant The Respondent The CIT, Concerned, Mumbai The DR Concerned Bench //True Copy// By Order Dy/Asstt. Registrar, ITAT, Mumbai. Printed from counselvise.com "