Bombay HC quashes reassessment due to lack of sanction by competent authority under Section 151; TOLA extension ineffective.
Reassessment Invalid Without Proper Section 151 Sanction: Bombay HC
The Bombay High Court quashed a reassessment proceeding on the grounds that the sanction under Section 151 was issued by an Additional Commissioner who lacked the requisite authority. The court held that the Time of Limitation Act (TOLA) extension could not validate a fundamentally flawed sanction.
The reassessment was initiated under extended time limits, requiring prior sanction. The court emphasized that only officers specified under Section 151(1) can grant such sanction, and delegation does not extend to non-listed functionaries. Procedural compliance, it noted, is a jurisdictional prerequisite.
Implication: Taxpayers may challenge reassessments based on the hierarchical validity of sanctioning officers. This decision reinforces the principle that jurisdiction flows from compliance with statutory authority, not administrative convenience.
