INCOME TAX ACT, 1961

Section 147

Reassessment - Validity - Non-recording of proper satisfaction - Assumption of jurisdiction under section 147/148 on basis of invalid and mechanical approval

AO issued notice under section 148 for reopening assessment. Assessee contended that the AO erred in assumption of jurisdiction under section 147/148 on the basis of invalid and mechanical approval granted by CIT as the CIT did not record proper satisfaction and gave the approval without application of mind. Held: It was found that approval granted by CIT for issue of notice under section 148 was mechanical and without application of mind, which was not valid for initiating reassessment proceedings because from the remarks of CIT, it was not coming out as to which material, information, documents and which other aspects were gone through and examined by him for reaching to the satisfaction for granting such approval. Thus, the notice issued under section 148 was invalid and hence, the reassessment proceedings were liable to be quashed.

Relied:CIT, Jabalpur v. M/s. S. Goyanka Lime and Chemicals Ltd. (2015) 56 taxmann.com 390 (MP): 2018 TaxPub(DT) 4342 (MP-HC) United Electrical Co. (P) Ltd. v. CIT & Ors. (2002) 258 ITR 317 (Del.): 2002 TaxPub(DT) 1670 (Del-HC) M/s. Tara Alloys Ltd., v. ITO, ITA No. 2421/Del/2017: 2018 TaxPub(DT) 2267 (Del-Trib) and CIT, Jabalpur (M.P.) v. M/s. S. Goyanka Lime and Chemical Ltd. (2015) 64 taxmann.com 313 (SC): 2015 TaxPub(DT) 5456 (SC)

REFERRED :

FAVOUR : In assessee's favour

A.Y. :

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