Prior Sanction Of Approval From Competent Authority Mandatory Before The Reopening Of Assessment: ITAT
The Dehradun Bench of the Income Tax Appellate Tribunal (ITAT) has held that prior sanction of approval under Section 151 of the Income Tax Act from the competent authority is mandatory before the reopening of the assessment.The bench of Kul Bharat (Judicial Member) and M. Balaganesh (Accountant Member) has observed that no approval under Section 151 of the Income Tax Act is on record for...
The Dehradun Bench of the Income Tax Appellate Tribunal (ITAT) has held that prior sanction of approval under Section 151 of the Income Tax Act from the competent authority is mandatory before the reopening of the assessment.
The bench of Kul Bharat (Judicial Member) and M. Balaganesh (Accountant Member) has observed that no approval under Section 151 of the Income Tax Act is on record for the years under consideration; the assumption of jurisdiction under Section 147 becomes void ab initio.
The appellant/assessee corporation was formulated by the state through a ratified government order towards meeting the objective of rehabilitation of ex-servicemen in the state of Uttarakhand, in lieu of which the assessee corporation has been claiming exemption u/s 10(26BBB) of the Act, like 7 other corporations set up by the respective states in India.
The assessee contended that no approval as mandated under Section 151 was obtained by the AO for the purpose of reopening the assessment for the years under consideration. Despite several opportunities being given to the department, it was not able to produce the assessment records.
The tribunal quashed the reassessment.
Counsel For Appellant: Sanjay Malik
Counsel For Respondent: Poonam Sharma
Case Title: M/s Uttarakhand Purv Sainik Kalyan Nigam Limited Versus ITO
Case No.: ITA No:- 3071 & 3072/Del/2016