Case Law Details
Pioneer Town Planners Pvt. Ltd Vs DCIT (ITAT Delhi)
We may point out that from the proforma of approval u/s. 151 of the Act placed at pgs. 16-17 of the assessee paper book, it is clear that in column 12 the ACIT has granted approval for the issue of notice u/s. 148 of the Act by writ ng that “Yes, I am satisfied” which is not sufficient to comply with the requirement of s. 151 of the Act. As per ratio of the decision of High Court of Madhya Pradesh in the case of CIT v. M/s. S. Goyanka Lime and Chemical Ltd. (supra), where the JCIT/ACIT has only recorded “Yes I am satsfied” then, it has to be held that the approving authority has recorded satisfaction in a mechanical manner and without application of mind to accord sanction for issuing notice u/s. 148 of the Act for reopening of assessment and in this situation initiation of reassessment proceedings and reopening of assessment has to be held as invalid and bad in law. Therefore, we are inclined to hold that the reopening of assessment and notice u/s. 148 of the Act are bad in law and consequently all subsequent proceedings in pursuant thereto are also bad in law and the same cannot be held as valid and sustainable.
FULL TEXT OF THE ITAT JUDGMENT
This appeal has been filed by the Assessee against the order of Commissioner of Income Tax (Appeals)-38, New Delhi (‘CIT(A)’ for short) dated 22.12.2016 for the Assessment Year (A.Y) 2009-10 passed under section 143(3) of the Income Tax Act 1961 (for short ‘the Act).
2. The grounds raised by the Assessee read as follows:
Please become a Premium member. If you are already a Premium member, login here to access the full content.
