The Tax Publishers2019 TaxPub(DT) 6944 (Del-Trib)

INCOME TAX ACT, 1961

Section 147

Where approval granted by Addl. CIT for issuing of notice under section 148 was mechanical, the said approval was not within the meaning of section 151 and therefore, the notice under section 148 was invalid and accordingly the reopening was bad in law and hence, the same was liable to be quashed.

Reassessment - Validity of notice under section 148 - Approval granted for issuance of notice being not in accordance with section 151 -

Assessee was an employee of Delhi Police. AO found that assessee deposited cash in his savings account during relevant year under consideration. Accordingly, verification letters were sent to assessee but he did not submit any reply. Also the assessee did not file his Income Tax Return for the relevant assessment year. Subsequently, after recording the reasons under section 147, due approval of Addl. CIT was obtained. Thus, notice under section 148 and subsequent notices under section 142(1) were served upon the assessee. Held: It was found that approval granted by Addl. CIT for issuance of notice under section 148 was mechanical and without application of mind, which was not valid for initiating reassessment proceedings and was not in accordance with section 151 because from the remarks of Addl. CIT, it was not coming out as to which material, information, documents and which other aspects were gone through and examined by him for reaching to the satisfaction for granting approval. Therefore, the notice issued under section 148 was invalid and accordingly the reopening was bad in law and hence, the same was quashed.

REFERRED : CIT v. M/s S. Goyanka Lime & Chemicals Ltd. (2015) 56 taxmann.com 390 (MP) : 2018 TaxPub(DT) 4342 (MP-HC) United Electrical Co. (P.) Ltd. v. CIT & Ors. (2002) 258 ITR 317 (Del.) : 2002 TaxPub(DT) 1670 (Del-HC) and CIT v. S. Goyanka Lime & Chemical Ltd. (2015) 64 taxmann.com 313 (SC) : 2015 TaxPub(DT) 5456 (SC)

FAVOUR : In assessee's favour

A.Y. : 2008-09



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