Makam Industries Pvt Ltd Vs DCIT (ITAT Delhi)
The ITAT Delhi allowed the assessee’s appeal and quashed reassessment proceedings on jurisdictional grounds. The assessee’s case had earlier been assessed u/s 153C/143(3), but the AO later reopened the assessment u/s 147 based on investigation information and made addition u/s 68 relating to sale consideration received. The assessee challenged the validity of reopening on the ground that approval u/s 151 granted by the PCIT was mechanical and invalid.
The Tribunal observed that the approval column contained only the remark “As per Annexure,” and the annexure merely reproduced the reasons recorded by the AO without any independent satisfaction or approval by the PCIT. Holding that valid sanction u/s 151 is a mandatory jurisdictional requirement, the Tribunal concluded that reassessment proceedings were initiated without proper approval and therefore were void ab initio. Consequently, the entire reassessment order was quashed and merits were not examined.
FULL TEXT OF THE ORDER OF ITAT DELHI
This appeal by the assessee is directed against the order of the ld. ld. CIT – 25, Delhi dated 27.01.2025 pertaining to A.Y 2013-14.
2. The sum and substance of the grievance of the assessee is that the assessment order passed u/s 147/143(3) of the Income-tax Act, 1961 [the Act, for short] is bad in law, barred by limitation and without jurisdiction.
