Cash Deposit Reassessment Set Aside for Lack of Valid Sanction: ITAT Delhi

Rakesh Divedi Vs ITO (ITAT Delhi) “Yes, I Am Satisfied’ Is Not Sanction: ITAT Quashes Reassessment for Mechanical Approval under Section 151 The Delhi Bench of the Income Tax Appellate Tribunal allowed the assessee’s appeal for AY 2009-10 and quashed the entire reassessment proceedings, holding that the sanction granted under section 151 was mechanical and without application of mind. In this case, the assessment was reopened under section 147 on the basis of alleged unexplained cash deposits of ₹5.20 crore, and additions were ultimately sustained on a peak credit basis by the CIT(...