Yum! Restaurants Asia Pte. Ltd. Vs. Dy. DIT (Delhi High Court)
In the present case, having started off on a wrong note that the original assessment was scrutinized and an order was passed under section 143(3) of the Act, the assessing officer proceeded to put up the note to the DIT as is evident from the title of the note but, through the Additional DIT. Both the Additional DIT and the DIT appear to have concurred with the reasons for reopening the assessment but without applying their minds to the fact that the return originally filed was only processed under section 143(1) of the Act and not under section 143(3) of the Act. Had the Additional DIT realized this mistake, he would not have put up the file further for the approval of the DIT. Clearly, therefore, at the level of Additional DIT there was non-application of mind. Had the DIT realized the mistake, he would have declined to make a noting and would have returned the file to the Additional DIT drawing his attention to section 151 (2) of the Act which did not require any further approval by the DIT where the return originally filed is only processed under section 143(1) of the Act. On the contrary, the DIT again recorded his concurrence with the views of the assessing officer and the Additional DIT. Therefore, at the second level also plainly there was non-application of mind.
