Section 151: Sanction for Issue of Notice - An Important Safeguard



Quick Summary
Section 151 of the Income Tax Act 1961 mandates that an Assessing Officer must obtain approval from a higher authority before issuing a notice to reopen an assessment. This safeguard is crucial, especially for notices issued before April 1, 2021, as it prevents arbitrary disturbances to settled tax positions. The approving authority must independently apply their mind to the case, not merely rubber-stamp the request, to ensure the validity of the notice and subsequent proceedings.

Introduction Section 151 of the Income Tax Act 1961(Act), provides that Assessing officer (AO) has to take approval from the higher authority before issuing the notice u/s 148. AO, by the provisions of section 147 of the Act, has the power, to reopen the already completed Assessment. Section 1
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