| The Tax Publishers2019 TaxPub(DT) 6751 (Del-Trib) INCOME TAX ACT, 1961
Section 147
Where JCIT had accorded sanction under section 151 for issue of reassessment notice under section 148 in a mechanical manner without application of his mind in relation to objectivity of the issue, reopening of assessment under section 147 was invalid and without jurisdiction.
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Reassessment - Validity - Satisfaction recorded by JCIT indicated non-application of mind -
AO issued notice under section 148 for reopening the assessment under section 147. Assessee contended that the JCIT while giving satisfaction/approval to the reopening of the assessment had merely mentioned “Yes” it was a fit case for issue of notice under section 148. Therefore, assessee challenged reassessment proceedings. However, revenue contended that there is no Law as to how satisfaction has to be recorded by the JCIT. Held: In the instant case, JCIT had acted, of course, mechanically in order to discharge his statutory obligation properly in the matter of recording sanction as he merely wrote on the format 'Yes', I am satisfied' which indicated non application of mind, whereas satisfaction has to be recorded with objectivity on objective material. Thus, reopening of assessment under section 147 was invalid and without jurisdiction. Hence, reopening of assessment was quashed.
Relied:Sunil Agarwal v ITO 2018 TaxPub(DT) 4318 (Del-Trib), CIT v. S. Goyanka Lime & Chemical Ltd. [Special Leave to Appeal (C).....CC No. 11916/2015, dt. 8-7-2015] : 2015 TaxPub(DT) 5456 (SC), Pr. CIT v. N.C. Cables Ltd. [ITA No. 335/2015] : 2017 TaxPub(DT) 0264 (Del-HC),CIT v. S. Goyanka Lime & Chemicals Ltd. (2015) 56 taxmann.com 390 (MP) : 2018 TaxPub(DT) 4342 (MP-HC),Arjun Singh & Anr. v. Asstt. DIT-(Investigation) & Ors. (2000) 246 ITR 363 (MP) : 2000 TaxPub(DT) 0444 (MP-HC), Krishan Gopal v. ITO [ITA No. 3249/Del/2015, dt. 16-5-2017]
REFERRED :
FAVOUR : In assessee's favour
A.Y. : 2008-2009
INCOME TAX ACT, 1961
Section 68
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