Mechanical & ritualistic approval: Reassessment for Accommodation Entry quashed

Agroha Fincap Ltd Vs ITO (ITAT Delhi) Agroha Fincap Ltd filed an appeal against the order of the CIT(A), challenging the validity of the reassessment proceedings for AY 2009-10. The primary contention was that the approval u/s 151 of the Income Tax Act, which is a pre-requisite for reopening assessments, was defective and lacked proper application of mind. The ITAT Delhi considered the argument raised by the assessee and examined the copy of the approval u/s 151. They found that the approving authority had merely mentioned “Yes, I am satisfied that it is a fit case for reopening of asses...