ITO Vs Antriksh Growth Fund Ltd (ITAT Delhi)
ITAT Delhi held that approval granted under section 151 of the Income Tax Act in mechanical manner without application of mind hence reopening of assessment based on such mechanical order is liable to be quashed.
Facts- The Revenue filed appeal against the order of the Ld. CIT(A) in deleting the addition made u/s 68 of the Act and the assessee filed cross objection challenging the validity of the reassessment order as the approval of appropriate authority u/s 151 of the Act was without application of mind and therefore the assessment completed pursuant to such sanction by the appropriate authority u/s 151 of the Act without proper application of mind is bad in law.
Conclusion- Held that the approval granted by the Addl. CIT, Range-1 u/s 151 of the Act is mechanical without application of mind and therefore the reopening of assessment and passing the reassessment order u/s 143(3) r.w.s. 147 of the Act based on such mechanical order is hereby quashed. Since we have quashed the reassessment on legal proposition, we are not adjudicating the grounds in appeal of the Revenue on merits as it would be of only academic in nature at this stage and they are left open. In the result, the cross objection filed by the assessee is allowed and the appeal of the Revenue is dismissed.
