S. 147/151: Sanction of CIT Instead of JCIT Renders Reopening Void

Ghanshyam K. Khabrani vs. ACIT (Bombay High Court)

The AO issued a notice u/s 148 to reopen the assessment for AY 2004-05. As no assessment had been made u/s 143(3) or s. 147 for that year and four years had expired, the AO was required to obtain the sanction of the JCIT (which included an Addl. CIT) u/s 151(2). The AO submitted a proposal to the CIT through the Addl. CIT. The Addl. CIT forwarded the proposal to the CIT and requested the CIT to grant sanction, which the CIT did. The assessee challenged the reopening inter alia on the ground that as s. 151(2) required the JCIT/Addl. CIT to grant approval, the approval of the CIT was not valid. HELD upholding the challenge: