INCOME TAX ACT, 1961

Section 151 read with Section 148

Reassessment - Validity - Mechanical approval granted by Pr. CIT under section 151 -

Assessee challenged the validity of reassessment proceedings on the ground that approval for issue of the notice under section 148 was granted by Pr. CIT, in a mechanical manner and without application of mind.Held: On perusal of proforma for the approval granted by Pr.CIT, it was evident that in the relevant column No. 13 for satisfaction of Pr. CIT, he had only mentioned 'yes'. No other information was available on record or provided by the DR, which could establish application of mind by Pr. CIT, while granting sanction/approval for issue of notice under section 148. No other evidence was produced as to substantiate that matter was ever discussed between AO or Addl. CIT and the Pr. CIT for arriving at satisfaction on the reasons recorded by AO. Mere mentioning of 'yes' for approval, without any other evidence of application of mind, amounted to mechanical approval under section 151 and therefore, reassessment was quashed as invalid.

Followed:Madhu Apartment Private Limited v. ITO ITA No. 3869/Del./2018 : 2021 TaxPub(DT) 891 (Del-Trib).

REFERRED :

FAVOUR : In assessee's favour.

A.Y. : 2009-10

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