ITAT Dehradun Rules Reassessment Invalid Due to Defective Sanction: PCIT Approval Insufficient Under Section 151

The Income Tax Appellate Tribunal (ITAT), Dehradun Bench, has delivered a pivotal ruling concerning the jurisdictional validity of reassessment proceedings initiated under the Income Tax Act, 1961. In the case of Sheikh Ikbal Husen Vs Assessment Unit ITO, the Tribunal held that strict adherence to the statutory hierarchy regarding administrative sanctions is mandatory.

The Bench quashed the assessment proceedings after determining that the approval for issuing notice under Section 148 was granted by an incompetent authority—specifically, the Principal Commissioner of Income Tax (PCIT)—when the prevailing instructions from the Central Board of Direct Taxes (CBDT) necessitated approval from the Chief Commissioner of Income Tax (CCIT).

Case Background and The Core Dispute

The appeal was filed by the assessee contesting the order passed by the Commissioner of Income Tax (Appeals)/National Faceless Appeal Centre (NFAC), New Delhi, dated 25/08/2025, pertaining to the Assessment Year 2013-14.

While the appeal may have contained various grounds on merits, the primary contention raised by the Legal Counsel for the assessee focused on a fundamental legal defect in the initiation of the proceedings. Through Additional Ground No. 1, the assessee challenged the jurisdiction of the Assessing Officer to issue the notice for reopening the assessment.