SBC Minerals Pvt. Ltd. Vs ACIT (Delhi High Court)
Delhi High Court held that failure of PCCIT to satisfactorily record its concurrence and granting of approval for reopening of assessment without application of mind invalidates the order issued u/s. 148A(d) of the Income Tax Act.
Facts- On 16.11.2018, notice u/s. 142(1) of the Income Tax Act, 1961 was issued during scrutiny assessment, seeking details and inputs of loan transaction (s). On 04.12.2018, petitioner submitted its response duly furnishing all the details including confirmation of unsecured loans. On 22.02.2023, the impugned Show Cause Notice was issued u/s. 148A(b) proposing reopening of the case of the petitioner u/s. 148 for the Assessment Year 2016-17.
On 20.03.2023, the impugned order was passed u/s. 148A(d) treating the case as fit for reopening u/s. 148, quantifying the income escaping assessment at Rs.3,15,09,010/- for the subject AY 2016-17. As a consequence to the impugned order passed u/s. 148A(d) of the Act, notice u/s. 148 of the Act was issued on 20.03.2023.
Feeling aggrieved, the petitioner has filed the present writ petition challenging the impugned notice under 148A of the Act as also the order passed u/s. 148A(d). Petitioner has also laid challenge to the grant of sanction u/s. 151 of the Act.
