Mechanical Approval Under Repealed Section Invalidates Reopening: ITAT Delhi

Pushkar Vishwas Vs ITO (ITAT Delhi) Assessee, an individual, appealed against the order of NFAC, Delhi, upholding reassessment framed u/s 144/147 wherein cash deposits of ₹27,73,000 were treated as unexplained income. The sole legal issue argued was that the approval u/s 151 for reopening was mechanical & based on a non-existent provision of law. AO had recorded reasons citing reopening “u/s 147(a)”—a provision omitted from the statute since 01.04.1989—& obtained sanction from the Addl. CIT & PCIT using a pre-typed format stating only “Yes, I am satisfied.” The Tribun...