| आयकर अपीलीय अिधकरण ायपीठ, मुंबई |
IN THE INCOME TAX APPELLATE TRIBUNAL
“G” BENCH, MUMBAI
BEFORE SHRI SAKTIJIT DEY, HON’BLE VICE PRESIDENT
&
SHRI NARENDRA KUMAR BILLAIYA, HON’BLE ACCOUNTANT MEMBER
I.T.A. Nos. 4540 & 4538/Mum/2024
Assessment Year: 2016-17 & 2017-18
ITO-42(1)(4), Mumbai, Kautilya Yagnesh Harnish Shah, Mumbai
Bhawan Vs C-1, C-49/50, Mahavir Nagar
Shankar Lane, Kandivali
West Mumbai - 400067
[PAN: AVTPS0554R]
अपीलाथ/ (Appellant) यथ/ (Respondent)
C.O. Nos. 196 & 195/Mum/2024
Assessment Years: 2016-17 & 2017-18
Yagnesh Harnish Shah, Mumbai ITO-42(1)(4), Mumbai, Kautilya
C-1, C-49/50, Mahavir Nagar Vs Bhawan
Shankar Lane, Kandivali
West Mumbai - 400067
[PAN: AVTPS0554R]
अपीलाथ/ (Appellant) यथ/ (Respondent)
Assessee by : Shri Jigar Mehta, C.A.
Revenue by : Shri Bhangepatil Pushkaraj Ramesh, Sr. D/R
सु नवाई की तारीख/ Dateof Hearing : 11/02/2025
घोषणा की तारीख / Date of Pronouncement : 14/02/2025
आदे श/O R D E R
PER NARENDRA KUMAR BILLAIYA, AM:
I.T.A. Nos. 4540 & 4538/Mum/2024 are two separate appeals by
the revenue preferred against two separate orders dated 05/07/2024
pertaining to AY 2016-17 & 2017-18.
The assessee has also preferred cross-objections in C.O. Nos. 196
& 195/Mum/2024 for respective assessment years.
I.T.A. Nos. 4540 & 4538/Mum/2024
C.O. Nos. 196 & 195/Mum/2024
2. Revenue’s appeal for AY 2017-18 and both the cross-objections by
the assessee are time barred. The delay is condoned.
3. In its cross-objection, the assessee has challenged the validity of
the order u/s 148A(d) of the Act dated 08/07/2022 and notice u/s 148
of the Act dated 11/07/2022 being devoid of approval of appropriate
competent authority making the same as invalid, non-est and bad in law.
4. Since the cross-objection of the assessee goes to the root of the
matter, we decided to adjudicate it first. Order u/s 148A(d) for AY 2016-
17 is exhibited at page 58 to 60 of the paper book and the impugned
notice u/s 148 of the Act dated 11/07/2022 for AY 2016-17 read as
under:-
I.T.A. Nos. 4540 & 4538/Mum/2024
C.O. Nos. 196 & 195/Mum/2024
4.2. It can be seen from the above that this notice is issued after
obtaining prior approval of the Principal Commissioner of Income Tax-
3, Mumbai.
5. We have given a thoughtful consideration to the impugned order
u/s 148A(d) and the notice u/s 148 of the Act. The relevant assessment
years are 2016-17 & 2017-18 and the time limit of three years elapsed on
31/02/2021 which falls between 20/03/2020 and 31/03/2021 during
which provisions of TOLA would apply. Accordingly, the amended
provisions under the Act read with TOLA extended the time limit for
granting of approval till 30/06/2021 by the specified authority. In the
present case, since the notice u/s 148 of the Act and the impugned order
u/s 148A(d) of the Act have been issued beyond the period of three
years from the end of the relevant assessment year, the case of the
assessee falls within the provisions of Section 151(ii) of the amended law
where the specified authority for grant of approval is specified as
Principal Chief Commissioner/ Principal Director General, Chief
Commissioner or Director General, whereas, in the appeals under
consideration, the approval obtained is from Principal Commissioner of
Income tax.
5.1. Therefore, in our considered opinion, since proper sanction by the
specified authority had not been obtained for issue of notice u/s 148 of
the Act as per the relevant provisions of the Act, the said notice is bad
in law. The notice is accordingly set aside. The resultant order is
quashed. Since we have quashed the assessment order, we do not find
it necessary to delve into the merits of the case.
I.T.A. Nos. 4540 & 4538/Mum/2024
C.O. Nos. 196 & 195/Mum/2024
6. In the result, appeals of the revenue are dismissed and cross-
objections filed by the assessee are allowed.
Order pronounced in the Court on 14th February, 2025 at Mumbai.
Sd/- Sd/-
(SAKTIJIT DEY) (NARENDRA KUMAR BILLAIYA)
VICE-PRESIDENT ACCOUNTANT MEMBER
Mumbai, Dated 14/02/2025
*SC SrPs
आदे श की ितिलिप अेिषत/Copy of the Order forwarded to :
1. अपीलाथ / The Appellant
2. थ / The Respondent
3. संबंिधत आयकर आयु! / Concerned Pr. CIT
4. आयकर आयु! (अपील)/ The CIT(A)-
5. िवभागीय ितिनिध ,आयकर अपीलीय अिधकरण, मुंबई /DR,ITAT, Mumbai,
6. गाड% फाई/ Guard file.
आदे शानुसार/ BY ORDER,
TRUE COPY
Assistant Registrar
आयकर अपीलीय अिधकरण
ITAT, Mumbai
