PCCIT’s or Director General’s Approval required for Income Tax Reassessment Post 3 Year Time Limit: ITAT

The ITAT clarified that any reassessment of income tax beyond the three-year limit requires the approval of the Principal Chief Commissioner or the Director-General. In this case, the ITAT set aside the reassessment order because it lacked the necessary approval from the competent authority, as required under the law. The tribunal reiterated that procedural compliance is essential for reassessments to be valid.