Reassessment proceedings initiated through a notice under Section 148 issued beyond the prescribed limitation period and without obtaining mandatory sanction from the designated higher authority as per Section 151(1) of the Income Tax Act are invalid and liable to be quashed.

आदेश/ORDER

Per Dr. Arjun Lal Saini, A.M.:

Captioned appeal filed by the assessee, pertaining to Assessment Year 2013-14, is directed against the order passed under section 250(6) of the Income Tax Act, 1961 (hereinafter referred to as “the Act”) by National Faceless Appeal Centre (NFAC), Delhi/Commissioner of Income-tax (Appeals) (‘CIT(A)’), dated 25.05.2025, which in turn arises out of an assessment order passed by Assessing Officer u/s. 147 r.w.s. 144 of the Act on 29.03.2022.

2. The grounds of appeal raised by the assessee are as follows:

(1) Learned Commissioner of Appeals (NFAC) erred by not considering the submission made by the Appellant and bad in law by confirming the addition of Rs. 7,49,971/- with huge demand of Rs. 4,84,315/

(2) Learned A.O. erred in law as well facts in making addition u/s 68 sum of Rs.70,38,117/- as unexplained income with regard to bank credits which made out of normal course of business and initiate the separately penalty proceeding u/s. 271B as well as Ld. Commissioner of Appeals (NFAC) by not considering the submission fully, rather than deleting the addition partly substained to the extent of Rs. 7,49,971/-.

(3) Learned Commissioner of Appeals (NFAC) erred by not considering the facts and submissions regarding not given effective opportunity to being heard by Ld. assessing officer, dismissed the ground of appeals as well as not providing adequate opportunity for the appellant to present his case, thereby violating the principles of natural justice.

(4) Learned A.O. erred in issuance of the notice under Section 148 as well as Learned Commissioner of Appeals (NFAC) erred by not considering the facts and submissions regarding the notice issued beyond the time limit prescribed under the Income Tax Act, rendering the reassessment proceedings invalid.

(5) Learned A.O. erred in law as well as on facts making assessment u/s. 147 r.w.s 144 r.w.s. 144B of the Act. As well as Ld. Commissioner of Appeals (NFAC) also erred in law by not considering the same. The order passed by the Commissioner of Appeals is contrary to the provisions of law and is, therefore, liable to be set aside.

(6) Appellant craves leave to add, amend, alter or withdraw any ground of appeals.”

3. Brief facts qua the issue are that assessee is an individual and has filed return of income u/s 139 of the Income Tax Act, 1961 (hereinafter 'the Act') for the year under consideration, that is, 2014-15, on 20.02.2014, declaring total income of Rs.1,85,850/-. In assessee`s case, information was uploaded by the DDIT(Inv.), Jamnagar, on Insight portal of Department that the asseessee has deposited substantial cash in his bank account. On the basis of this information, the proceedings u/s 147 of the Act were initiated after obtaining necessary approval from the competent authority as required u/s 151 of the Act. The reasons for reopening are reproduced as under:

1. "Brief details of the Assessee:

The brief details of the assessee are mentioned above. The assessee filed return of income on 30/12/2014, declaring total income Rs. 1,85,850/- and agricultural income of Rs. 2,48,610/-for A. Y. 2013-14. As per information available on records, the asssesssee has carried out significant financial transactions.

1. Brief details of information collected/received by the assessing officer.

In this case, the information received in category of High Risk Transaction CRIU/VRU Information on Insight Portal of the department. As per the information uploaded by the ADIT(Inv.) Jamnagar and its report dated 13/03/2020, it is noticed that the assessee has entered into significant financial transactions as mentioned