Vipul Agrawal Vs ACIT (ITAT Delhi)
Mechanical approval U/s 151 invalid – Jurisdiction wrongly assumed by ITO despite CBDT Instruction No. 1/2011 – Reassessment quashed: ITAT Delhi
The ITAT Delhi Bench heard the appeal of the individual, where reassessment was initiated u/s 147. The Tribunal examined the validity of approval u/s 151 and found that the PCIT had granted sanction mechanically, merely stating “satisfied/approved” without recording reasons, which courts have consistently held to be invalid.
Further, as per CBDT Instruction No. 1/2011 dated 31.01.2011, since the assessee’s returned income exceeded Rs. 15 lakhs, jurisdiction lay only with the ACIT and not the ITO.
The ITAT held that both the mechanical approval and lack of proper jurisdiction rendered the reassessment proceedings void ab initio. Consequently, the reopening was quashed, and the appeal was allowed in favor of the assessee, ruling that the assumption of jurisdiction under section 147 was invalid.
FULL TEXT OF THE ORDER OF ITAT DELHI
1. The appeal in ITA No.5066/Del/2024 for AY 2012-13, arises out of the order of the ld National Faceless Appeal Centre (NFAC), Delhi [hereinafter referred to as ‘ld. CIT(A)’, in short] dated 16.09.2024 against the order of assessment passed u/s 143(3) of the Income-tax Act, 1961 (hereinafter referred to as ‘the Act’) dated 26.12.2019 by the Assessing Officer, ACIT, Circle-2(2)(1), Ghaziabad (hereinafter referred to as ‘ld. AO’).
