SLP Dismissed as Reopening Notice Lacking Sanction from Specified Authority Under Section 151 Is Invalid
Issue
Whether a reassessment notice issued under Section 148 is legally sustainable when sanction for its issuance was granted by the Commissioner (Exemption) instead of the Joint Commissioner specified under Section 151 of the Income-tax Act, 1961.
Facts
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Assessment Year: The dispute pertains to Assessment Year 2015-16.
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Notice Issued: The Assessing Officer issued a reopening notice under Section 148 on March 28, 2021 (under the pre-April 1, 2021 old regime).
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Writ Filed: The assessee filed a writ petition challenging the Section 148 notice and consequential reassessment proceedings for lack of sanction from the proper specified authority under Section 151.
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TOLA Context: Section 3(1) of the Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020 (TOLA) extended certain compliance time limits falling between March 20, 2020, and March 31, 2021.
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Specified Authority Test: Under the old regime, for cases where the 4-year time limit from the end of the AY fell between March 20, 2020, and March 31, 2021, the specified authority under Section 151(2) to grant approval was the Joint Commissioner.
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Sanction Defect: The sanction for the notice issued on March 28, 2021, was obtained from the Commissioner (Exemption) rather than the Joint Commissioner.
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High Court Order: The High Court quashed the notice on the ground that it was not approved by the designated specified authority under Section 151.
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Revenue’s SLP: The Revenue filed a Special Leave Petition (SLP) before the Supreme Court against the High Court decision.
Decision
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Precedent Upheld: The Supreme Court noted that the SLP against the relied-upon precedent establishing the same proposition of law had already been dismissed.
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No Merit in SLP: The Court declined to entertain the Revenue’s petition, reaffirming that sanction from an improper authority invalidates the Section 148 notice.
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SLP Dismissed: The Special Leave Petition filed by the Revenue was dismissed in favor of the assessee [Paras 3 to 5].
Key Takeaways
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Strict Adherence to Section 151: Obtaining approval from the correct specified authority designated under Section 151 is a mandatory jurisdictional prerequisite for issuing a valid notice under Section 148.
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TOLA Does Not Replace Specified Authority: While TOLA extended time limits for issuing notices and granting approvals, it did not alter or substitute the specific hierarchical authority competent to grant sanction under Section 151.
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Fatal Jurisdictional Sanction Defect: Sanction obtained from a higher or different authority (e.g., Commissioner instead of Joint Commissioner) does not cure the defect and renders the entire reassessment void.
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.