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| The Tax Publishers2019 TaxPub(DT) 5436 (Del-Trib) INCOME TAX ACT, 1961
Section 147 Section 151
Reopening of assessment merely on the basis of information emanated from investigation wing without independent application of mind by AO and also on the ground of approving authorities having given approval to reopening of assessment in a mechanical manner, was quashed as invalid.
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Reassessment - Validity - Borrowed satisfaction by AO on basis of information emanated from investigation wing and mechanical approval by superior authority -
Assessee's case was reopened under section 147 by recording the reasons and after obtaining approval from Pr. CIT on the basis of information received from the Investigation Wing that assessee was a beneficiary of providers of bogus long-term capital gain.Held: As apparent from the approval recorded and words used by Pr. CIT that 'Yes. I am satisfied.' the sanction was merely mechanical and Pr. CIT had not applied independent mind while according sanction as there was not an iota of material on record as to what documents he had perused and what were the reasons for his being satisfied to accord sanction to initiate reopening of assessment. Even otherwise, AO without applying his mind, had simply, on the basis of the information emanated from Investigation Wing, jumped to the conclusion that there was escapement of income. Accordingly, reopening of assessment not being in accordance with law, was set aside.
Relied:SBS Realtors (P) ltd. v. ITO vide ITA No. 779/Del/2018, dated 1-4-2019, ITO v. Ward-17(4), New Delhi v. Virat Credit & Holdings Pvt. Ltd., ITA No. 89/Del/2012 and CO No. 57/Del/2012, Order, dated 9-2-2018 : 2018 TaxPub(DT) 1077 (Del-Trib), and CIT v. S. Goyanka Lime & Chemical Ltd. 92015) 64 Taxmann.com 313 (SC) : 2015 TaxPub(DT) 5456 (SC).
REFERRED :
FAVOUR : In assessee's favour.
A.Y. : 2011-12
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