Reassessment can’t be vitiated on ground that Sec. 151 approval letter was received by AO after issuing notice: HC

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Reassessment

Case Details: Sahara Credit Cooperative Society Ltd. v. DCIT - [2022] 141 taxmann.com 384 (Allahabad)

Judiciary and Counsel Details

    • Devendra Kumar Upadhyaya & Subhash Vidyarthi, JJ.
    • Waseeq Uddin Ahmed for the Petitioner.
    • Manish Misra & Dr Ravi Kumar Mishra for the Respondent.

Facts of the Case

Assessee was a multi-state co-operative society. It had filed its return of income which was processed and an assessment order was passed.

Later, a reopening notice was issued on the ground that the identity, creditworthiness, and genuineness of deposits received from its members and shareholder’s fund were not verified with relevant documents.

Assessee filed writ petition contended that notice was issued on 22-3-2021 by DCIT whereas letter written by member CIT communicating approval under section 151 for issuance of notice was received by Assessing Officer (AO) on 24-3-2021. Thus, on the date of issuance of notice i.e., on 22-3-2021, AO was not having any approval/sanction.

High Court Held

The Allahabad High Court held that there was no need for the paper containing approval to be received physically before issuing the notice. AO can proceed to issue a notice under section 148 if the approving authority has granted his approval and such approval has been communicated to AO in any manner including by uploading it on the portal of the department.

The notice issued under section 148 is not vitiated on the ground that the paper containing approval under section 151 was received by AO after issuing the notice.

Thus, notice issued under section 148 as well as all the procedures undertaken in consequence of the notice did not suffer from any such illegality to warrant any interference by High Court.

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