Vidhi Build Corn Vs DCIT (ITAT Rajkot)
In this case, the ITAT Rajkot held that reopening of assessment is invalid where approval for issuing notice u/s 148 is granted mechanically without application of mind.
The Tribunal observed that:
- The approval granted by the higher authority did not mention key details such as assessment year or quantum of escaped income,
- The sanction was given in a routine/mechanical manner, and
- This violated the legal requirement of independent application of mind before granting approval.
Relying on judicial precedents (including S. Goyanka Lime & Chemicals Ltd.), the ITAT held that:
- Mechanical approval renders the sanction invalid,
- Consequently, the notice u/s 148 becomes void, and
- All subsequent reassessment proceedings collapse.
Accordingly:
- The entire reassessment was quashed, and
- Other issues on merits were treated as academic.
FULL TEXT OF THE ORDER OF ITAT RAJKOT
Captioned four appeals filed by the same assessee, pertaining to Assessment Year 2019-20 to 2022-23, are directed against the separate orders passed under section 250 of the Income Tax Act, 1961 by National Faceless Appeal Centre (NFAC), Delhi/Commissioner of Income Tax (Appeals), which in turn arise out of separate assessment orders passed by the Assessing Officer u/s 143(3) r.w.s.147 of the I.T. Act.
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