Case Law Details
Ashok Kumar Agarwal Vs ITO (ITAT Delhi)
ITAT Delhi held that by mere putting a seal as approving statement is not sufficient for initiation of reassessment proceedings u/s 147. It proves that approving authority has granted the approval in mechanical manner without application of mind and hence initiation of reassessment proceedings invalid.
Facts- The assessee vide present appeal has put up additional ground mainly contending that impugned reopening action us 148 made on basis of incorrect /erroneous /non existing basis that assessee do not have PAN and is non return filer, whereas assessee has admittedly filed return on 30.09.2009 much before impugned reopening action made u/s 148 on 23.03.2016 , so impugned reopening is invalid and unlawfully made.
Conclusion- The approving authority has to consider entire material before granting approval for initiation reassessment proceedings u/s. 147 of the Act and issuance of notice u/s. 148 of the Act. I am unable to agree with the contention of the learned Senior DR that the putting seal as statement of approval is sufficient as the any exercise in the part of the Ld. PCIT for application of mind towards the said material which was gathered by the AO and the reasons recorded by him for the purpose of initiation of reassessment proceedings and issuance of notice u/s. 148 of the Act. Merely putting a seal as approving statement is not sufficient and make it clear that the approving authority has granted approval in a mechanical manner without application of mind to the relevant material and reasons recorded by the AO. Therefore the initiation of reassessment proceedings also fails on this count. Therefore additional grounds of assessee are allowed and initiation of reassessment proceedings, issuance of notice u/s. 148 of the Act and all consequent proceedings and orders are hereby quashed.
FULL TEXT OF THE ORDER OF ITAT DELHI
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