Jiya Exim Private Limited Vs ITO (ITAT Kolkata)
Reopening Quashed – Mechanical Approval u/s 151 Held Invalid – Rubber Stamp Sanction Cannot Sustain Sec 147 Proceedings – ITAT Kolkata
ITAT Kolkata quashed reassessment holding that approval granted by PCIT u/s 151 was mechanical and without recording any independent satisfaction. Tribunal noted from approval forms (pages 3–5) that approving authority merely affixed signature without indicating reasons or application of mind, defeating statutory safeguard intended under Sec 151. Relying on Capital Broadways, S. Goyanka Lime & Chemicals, Chhugamal Rajpal and jurisdictional HC ruling in Sambuddha Tracon Pvt. Ltd., ITAT held that rubber-stamp approval renders notice u/s 148 invalid. Consequently, reopening and assessment framed u/s 144/147 for alleged accommodation entry of ₹55 lakh were annulled. Appeal allowed in favour of assessee.
FULL TEXT OF THE ORDER OF ITAT KOLKATA
The present appeal filed by the assessee arises from order dated 18.02.2025 passed u/s 250 of the Income Tax Act, 1961 (hereafter “the Act”) by the Ld. Commissioner of Income Tax (Appeals) National Faceless Appeal Centre (NFAC), Delhi [hereafter “the Ld. CIT(A)].
2. At the outset, there is a delay of 142 days in filing the appeal by the assessee for which condonation petition along with affidavit is filed before us. After perusing the affidavit, we find that the delay is for reasonable cause and is accordingly, condoned.
