Section 151 and 152 of Income Tax Act 1961: Sanction for Issue of Notice and Other Provisions

Sections 151 and 152 of the Income Tax Act, 1961 contain provisions relating to approval requirements for issuing notice under Section 148 and other matters connected with assessment, reassessment and recomputation under Section 147.

Section 151 Income Tax Act 1961: Sanction for Issue of Notice

Section 151 provides that notice under Section 148 cannot be issued without the approval of the specified authority where such approval is required under the Act.

The specified authority examines the reasons recorded by the Assessing Officer and determines whether the case is fit for issue of notice under Section 148.

The Assessing Officer must record reasons before seeking approval.
The competent authority must apply its satisfaction to the recorded reasons.
The approval requirement acts as a statutory safeguard before reassessment proceedings.

Section 152 Income Tax Act 1961: Other Provisions

Section 152 provides provisions relating to assessment, reassessment or recomputation made under Section 147.

In proceedings under Section 147, tax is charged at the rate applicable as if the escaped income had not escaped assessment.

Where reassessment proceedings are initiated, the assessee may claim that proceedings should be dropped in circumstances provided under the Act, subject to statutory conditions.

Important: Applicability of reassessment provisions depends on the relevant assessment year, amendments applicable for that period and the facts of each case.