MANISHA NITIN BRAHMBHATT ,MUMBAI V. ITO WARD 24(2)(1), MUMBAI

ITA 1651/MUM/2025

AI Insights

The case involves an appeal by Manisha Nitin Brahmbhatt against the order of the National Faceless Assessment Centre (NFAC), Delhi, which pertained to the assessment year 2017-18. The primary contention was the legality of the notice issued under section 148 of the Income Tax Act, which the assessee claimed was 'bad in law'. Additionally, there was a challenge on the merits regarding an addition of Rs. 3,77,29,617 made under section 68 of the Act. The Tribunal focused on the procedural validity of the notice, particularly the requirement of prior approval under section 151 of the Act, which was found to be improperly obtained.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 360865 (ITAT-MUMBAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-05-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Assessment Year: 2017-2018
• Other Referred Cases: Ashish Agrawal vs. State
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ASSESSEE; GOVINDRAO J. NINAWE; DR
• Assessee Lawyers: K. GOPAL AKHILESH; ARS
• Section: 148

Judgement Text

"| आयकर अपीलीय अिधकरण ा यपीठ, मुंबई | IN THE INCOME TAX APPELLATE TRIBUNAL “D” BENCH, MUMBAI BEFORE SHRI SAKTIJIT DEY, HON’BLE VICE PRESIDENT & SHRI NARENDRA KUMAR BILLAIYA, HON’BLE ACCOUNTANT MEMBER I.T.A. No. 1651/Mum/2025 Assessment Year: 2017-18 Manisha Nitin Brahmbhatt 711 May Fair Gardens Azad Lane S.V. Road Mumbai - 400058 [PAN: AABPB7462J] Vs National Faceless Assessment Centre, Delhi अपीला थ\u0016/ (Appellant) \u0017\u0018 यथ\u0016/ (Respondent) Assessee by : Shri K. Gopal Akhilesh, A/Rs Revenue by : Shri Govindrao J. Ninawe, Sr. D/R सुनवाई की तारीख/Date of Hearing : 08/05/2025 घोषणा की तारीख /Date of Pronouncement: 14/05/2025 आदेश/O R D E R PER NARENDRA KUMAR BILLAIYA, AM: This appeal by the assessee is preferred against the order dated 31/01/2025 by NFAC, Delhi [hereinafter “the ld. CIT(A)”] pertaining to AY 2017-18. 2. The challenge of the assessee is two-fold. Firstly, the assessee has challenged the reopening of the assessment claiming that the notice issued u/s 148 of the Act is bad in law and subsequently on merits of the case, the assessee has challenged the addition of Rs. 3,77,29,617/- made u/s 68 of the Act. 3. Before us, the ld. Counsel for the assessee took a new plea that the notice issued u/s 148 of the Act is not approved by appropriate authority as provided in provisions of Section 151 of the Act. I.T.A. No. 1651/Mum/2025 2 4. Briefly stated, the facts of the case are that the assessee is an individual assessee who filed his return of income on 07/11/2017 declaring total income of Rs.14,97,250/-. 5. On the basis of information received from ACIT Central Circle – 2(1), Mumbai, the case of the assessee was reopened and accordingly notice u/s 148 of the Act was issued dated 27/07/2022 which reads as under:- I.T.A. No. 1651/Mum/2025 3 6. As can be seen from point G that the notice is being issued after obtaining the prior approval of the Pr. CIT-20, Mumbai dated 24/07/2022. The quarrel revolves around the validity of this notice. 7. We heard the parties and perused the material on record. In assessee's case for AY 2016-17 pursuant to the directions of the Hon'ble Supreme Court in the case of Ashish Agrawal (supra), the AO passed an I.T.A. No. 1651/Mum/2025 4 order under section 148(d) of the Act and issued a notice under section 148 on 30/07/2022. From the above observations of the Hon'ble Supreme Court it is clear that the though the prior approval under section 148A(b) and 148(d) were waived in terms of the decision of Ashish Agarwal (supra), for issue of notice under section 148A(a) and under section 148 on or after 1 April 2021, the prior approval should be obtained from the appropriate authorities specified under Section 151 of the new regime. The provisions of section 151 of the Act under the new regime read as under: Sanction for issue of notice. 151. Specified authority for the purposes of section 148 and section 148A shall be,- (i) Principal Commissioner or Principal Director or Commissioner or Director, if three years or less than three years have elapsed from the end of the relevant assessment year; (ii) Principal Chief Commissioner or Principal Director General or where there is no Principal Chief Commissioner or Principal Director General, Chief Commissioner or Director General, if more than three years have elapsed from the end of the relevant assessment year. 8. As mentioned elsewhere, in the case of the assessee, the impugned notice is issued with the prior approval of the Pr. CIT-20, Mumbai accorded on 24/07/2022 and this fact has not been controverted by the ld. D/R. The period of three years has elapsed on 31/03/2021. Thus, the notice is issued beyond three years, therefore, as per the decision of the Hon’ble Supreme Court (supra), the approval should have been obtained under the mandated provisions of Section 151(ii) of the Act i.e., the approval should have been obtained from the Principal Chief Commissioner whereas, the approval has been obtained from Principal Commissioner as stated in the notice u/s 148 of the Act exhibited elsewhere. I.T.A. No. 1651/Mum/2025 5 9. Thus, we find force in the contention of the ld. Counsel for assessee that the notice u/s 148 of the Act for AY 2017-18 is issued without obtaining prior approval from the appropriate authority and, therefore, deserves to be quashed. Since we have quashed the notice, we do not find it necessary to delve into the merits of the case. 10. In the result, appeal of the assessee is allowed. Order pronounced in the Court on 14th May, 2025 at Mumbai. Sd/- Sd/- (SAKTIJIT DEY) (NARENDRA KUMAR BILLAIYA) VICE-PRESIDENT ACCOUNTANT MEMBER Mumbai, Dated 14/05/2025 *SC SrPs *SC SrPs *SC SrPs *SC SrPs आदेश की \u0017ितिलिप अ ेिषत/Copy of the Order forwarded to : 1. अपीला थ\u0016 / The Appellant 2. \u0017 थ\u0016 / The Respondent 3. संबंिधत आयकर आयु! / Concerned Pr. CIT 4. आयकर आयु! ) अपील ( / The CIT(A)- 5. िवभा गीय \u0017ितिनिध ,आयकर अपीलीय अिधकरण, मुंबई /DR,ITAT, Mumbai, 6. गाड' फाई/ Guard file. आदेशानुसार/ BY ORDER TRUE COPY Assistant Registrar आयकर अपीलीय अिधकरण ITAT, Mumbai "