Surana Bros Pvt. Ltd Vs ITO (ITAT Kolkata)
Reopening u/s 147 Quashed – Borrowed Satisfaction Mechanical Approval u/s 151 Held Invalid – No Independent Application of Mind – ITAT Kolkata
ITAT Kolkata quashed reassessment holding that AO reopened case solely on information received from Singapore without independent verification, amounting to borrowed satisfaction and non-application of mind. Tribunal observed that reasons recorded were factually incorrect and assessee had already disclosed capital gains properly. Further, approval u/s 151 was held invalid as PCIT granted mechanical sanction by merely stating “approved” without examining material. Relying on Meenakshi Overseas & S. Goyanka Lime, ITAT held reopening void ab initio and allowed appeal of assessee in entirety.
FULL TEXT OF THE ORDER OF ITAT KOLKATA
The present appeal filed by the assessee arises from order dated 04.02.2025 passed u/s 250 of the Income Tax Act, 1961 (hereafter referred to as “the Act”) by the Ld. Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi [hereafter referred to as “the Ld. CIT(A)].
2. At the outset, we observe from the appeal folder that the appeal of the assessee is barred by limitation by 142 days for which the condonation petition was filed. After going through the contents of the application, we find that the delay is attributable to bonafide and genuine reasons and therefore, we are inclined to condone the delay and admit the appeal for adjudication.
