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| The Tax Publishers2019 TaxPub(DT) 6819 (Del-Trib) : (2019) 076 ITR (Trib) 0344 INCOME TAX ACT, 1961
Section 151
Reopening of assessment under section 147 was not sustainable if approval/sanction given by the authority was without recording satisfaction.
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Reassessment - Validity - Satisfaction not recorded by approving authority -
AO reopened the assessment under section 147, on the basis of information received from investigation wing of the department. Assessee contended that reopening was not sustainable as the approval was given by the authority in a mechanical manner i.e., without recording satisfaction. Held: Perusal of the proforma for approval to issue notice under section 148 showed that the PCIT while giving approval had simply mentioned “satisfied” and the Addl. CIT had simply mentioned “Yesâ€, it was a fit case to issue notice under section 148. Since both the approving authorities have given the approval in a mechanical manner, i.e., without recording satisfaction, therefore, the reassessment proceedings were not in accordance with law. Hence, the same was quashed.
Relied:Pr. CIT v. N.C. Cables Ltd. (2017) 391 ITR 11 (Del) : 2017 TaxPub(DT) 0264 (Del-HC)
REFERRED : CIT v. S. Goyanka Lime & Chemicals Ltd. (2015) 56 taxman.com 390 (MP) : 2018 TaxPub(DT) 4342 (MP-HC),Arjun Singh & Anr. v. Asstt. DIT-(Investigation) & Ors. (2000) 246 ITR 363 (MP) : 2000 TaxPub(DT) 0444 (MP-HC)
FAVOUR : In assessee's favour
A.Y. : 2009-10
INCOME TAX ACT, 1961
Section 28(i)
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