If the incorrect authority provided approval, the section 148A(d) order would be invalid
Fact and issue of the case
Affidavit-in-opposition filed by the respondents be kept with the record
Heard learned Advocates appearing for the parties
By this writ petition, petitioner has challenged the impugned order dated July 23, 2022, under Section 148A(d) of the Income Tax Act, 1961 relating to the assessment year 2017-2018 by raising the pure question of law relating to the jurisdiction of the Assessing Officer concerned in passing the aforesaid impugned order by non-compliance of the formalities of taking approval of the specified authority mentioned in Section 151(ii) of the Income Tax Act, 1961
Admitted position in this case is that impugned order under Section 148A(d) of the Act has been passed after a lapse of three years from the end of the relevant assessment year and in this case specified authority is not the Principal Commissioner of Income Tax-9, Kolkata from whom approval has been taken before passing the aforesaid impugned order and it appears on a plain reading of Section 151(ii) of the said Act that Principal CIT from whom approval has been taken is not the specified authority for the purpose of approval under Section 148 and Section 148A of the Income Tax Act, 1961
Observation of the court
Admitted position in this case is that impugned order under Section 148A(d) of the Act has been passed after a lapse of three years from the end of the relevant assessment year and in this case specified authority is not the Principal Commissioner of Income Tax-9, Kolkata from whom approval has been taken before passing the aforesaid impugned order and it appears on a plain reading of Section 151(ii) of the said Act that Principal CIT from whom approval has been taken is not the specified authority for the purpose of approval under Section 148 and Section 148A of the Income Tax Act, 1961
Considering the fact and circumstances of this case, submission of the parties and the aforesaid factual and legal position, the aforesaid impugned order under Section 148A(d) of the Act dated July 23, 2022 and all subsequent proceedings are quashed
However, quashing of the aforesaid impugned order under Section 148A(d) of the Act and subsequent proceedings will not be a bar on the part of the respondent/Assessing Officer concerned to proceed further from the stage where such irregularity has been committed, after taking approval from the “specified authority” in accordance with law
In view of the discussion made above, this writ petition being WPA 28658 of 2022 is disposed of
Conclusion
In the result, appeal of the assessee is allowed and ruled in favour of the assessee
