Reopening notice under Section 148 is invalid when issued without sanction from the specified authority.

By | September 4, 2026
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Reopening notice under Section 148 is invalid when issued without sanction from the specified authority.
Issue
Whether a reassessment notice issued under Section 148 of the Income-tax Act, 1961 is valid when approval was granted by the Commissioner (Exemption) instead of the Joint Commissioner specified under Section 151, considering the time relaxation provisions under TOLA, 2020.
Facts
  • The Assessing Officer issued a reopening notice under Section 148 for Assessment Year 2015-16 on March 28, 2021.
  • The assessee filed a writ petition challenging the notice and consequential reassessment order due to lack of valid sanction under Section 151.
  • Section 3(1) of TOLA, 2020 relaxed the time limits falling between March 20, 2020, and March 31, 2021, extending time up to March 31, 2021.
  • For Section 151 under the pre-April 1, 2021 regime, if four years from the end of the assessment year fell within the TOLA window, the specified authority under Section 151(2) had time until March 31, 2021, to grant approval.
  • Approval for the notice issued on March 28, 2021, was granted by the Commissioner (Exemption), whereas the designated authority was the Joint Commissioner.
  • The High Court quashed the notice on the ground of invalid sanction by an unauthorized officer.
Decision
  • The Supreme Court noted that the Special Leave Petition (SLP) against the judgment relied upon by the High Court had already been dismissed.
  • Following the established precedent, the Supreme Court declined to entertain the present petition.
  • The SLP filed by the Revenue was dismissed in favor of the assessee.
Key Takeaways
  • Strict Statutory Sanction Required: Reassessment proceedings under Section 148 are jurisdictionally defective and void ab initio if sanction is granted by an authority other than the specific authority mandated by Section 151.
  • TOLA Does Not Change Authority Designation: While TOLA extends time limits for granting approvals, it does not alter or substitute the competent authority prescribed under the statutory framework.
  • Dismissal of Revenue’s SLP: Approvals issued by higher authorities like the Commissioner (Exemption) cannot substitute the mandatory approval required from the Joint Commissioner under the applicable pre-amendment regime.
SUPREME COURT OF INDIA
Assistant Commissioner of Income-tax
v.
Swami Shanti Prakash Ashram Trust
Ujjal Bhuyan and ATUL S. CHANDURKAR, JJ.
SLP (CIVIL) Diary No(s). 47786 of 2026†
AUGUST  31, 2026
S. Dwarakanath, A.S.G., Abhyudey Kabra, Mudit Bansal, S. Vijay Adithya, Rishikesh Haridas, Nikhil Aradhe, Ms. Sunit Choudhary, Ishaan Sharma, Ram Ratan Sarma, Advs. and Sudarshan Lamba, AOR for the Petitioner.
ORDER
1. We have heard Mr. S. Dwarakanath, learned Addl. Solicitor General for the petitioner(s).
2. Delay condoned.
3. Special Leave Petition against the relied upon judgment has been dismissed by this Court.
4. Consequently, we decline to entertain the present Special Leave Petition as well.
5. Accordingly, the Special Leave Petition is dismissed.
6. Pending application(s), if any, shall stand disposed of.