ITAT Sets Aside Reassessment Notices Issued u/s 148 for Lack of Proper Sanction Post Finance Act, 2021

The Income Tax Appellate Tribunal (ITAT) has set aside reassessment notices issued under Section 148 of the Income Tax Act, citing a lack of proper sanction post-Finance Act, 2021. The Finance Act, 2021 introduced new provisions for reassessment, emphasizing strict procedural compliance, including mandatory approval from a specified authority. The ITAT’s decision highlights that any deviation from these revised procedures, particularly concerning the requisite sanction, renders the reassessment notice invalid. This ruling provides significant relief to taxpayers who have received reassessment notices where the proper approvals were not obtained as per the amended law. It reinforces the importance of tax authorities adhering strictly to procedural safeguards to ensure the validity of assessment proceedings.