Nilesh Ashanand Thacker Vs ITO (ITAT Rajkot)
ITAT Rajkot Quashes Reassessment Because PCIT Granted Mechanical Approval Under Section 151; ITAT Says Borrowed Satisfaction Cannot Sustain Reopening of Assessment Under Section 147; Mechanical Sanction by PCIT Leads to Quashing of Reassessment Proceedings; Reopening Based Solely on AIR Information Fails Due to Lack of Proper Approval.
The Income Tax Appellate Tribunal (ITAT), Rajkot Bench, allowed the appeal of the assessee for Assessment Year 2012-13 and quashed the reassessment proceedings initiated under Sections 147 and 148 of the Income Tax Act on the ground that approval granted under Section 151 was mechanical and without independent application of mind.
The appeal before the Tribunal was delayed by 428 days. The assessee explained that notices from the CIT(A) were sent to the email address of a previous tax consultant who failed to inform the assessee about the proceedings. The assessee claimed that he became aware of the appellate order only after receiving a recovery notice from the Department. The Tribunal accepted the explanation, observing that delay caused by a tax consultant’s mistake should not prejudice the assessee. Relying on earlier judicial precedents and the Gujarat High Court decision in Gujarat State Fertilizers & Chemicals Ltd., the Tribunal adopted a liberal approach and condoned the delay.
