| The Tax Publishers2020 TaxPub(DT) 0929 (Del-Trib) : (2020) 207 TTJ 0573 : (2020) 078 ITR (Trib) 0688 INCOME TAX ACT, 1961
Section 147, Proviso Section 151
AO had done nothing but to re-examine records which were already available and arrived at a different conclusion without recording any failure on the part of assessee to disclose truly and correctly all material facts necessary for assessment. Further, there had been no application of mind by Addl. CIT before granting approval in a mechanical manner simply stated 'Yes I am satisfied'. It was a fit case to issue notice under section 148. Accordingly, reopening was hit by proviso to section 147 and was, therefore, not sustainable.
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Reassessment - Beyond four years - No failure to disclose fully and truly all material facts -
AO reopened assessment after expiry of four years from the relevant assessment year. Assessee challenged this on the grtound of no failure to disclose fully and truly all material facts necessary for assessment and mechanical approval granted by Addl. CIT under section 15%.Held: AO had done nothing but to re-examine records which were already available and arrived at a different conclusion without recording any failure on the part of assessee to disclose truly and correctly all material facts necessary for assessment. Further, there had been no application of mind by Addl. CIT before granting approval in a mechanical manner simply stated 'Yes I am satisfied'. It was a fit case to issue notice under section 148. Accordingly, reopening was hit by proviso to section 147 and was, therefore, not sustainable.
Relied:Consulting Engineering Services (India) Pvt. Ltd. v. DCIT & Anr. (2015) 378 ITR 318 (Del.) : 2015 TaxPub(DT) 4549 (Del-HC) and United Electrical Co. (P) Ltd. v. CIT (2002) 258 ITR 317 (Del) : 2002 TaxPub(DT) 1670 (Del-HC).
REFERRED :
FAVOUR : In assessee's favour.
A.Y. : 2005-2006
IN THE ITAT, DELHI BENCH
BHAVNESH SAINI, J.M. & R.K. PANDA, A.M.
Bull Riders Financial Services (P.) Ltd. v. ITO
ITA No. 1891/Del./2017
10 February, 2020
In favour of assessee.
Assessee by: Rakesh Gupta & Somil Agarwal, Advocates.
Revenue by: S.L. Anuragi, Sr. D.R.
Bhavnesh Saini, J.M.
This appeal by assessee has been directed against the Order of the learned Commissioner (Appeals), Muzaffrnagar, dated 16-1-2017, for the assessment year 2005-2006, challenging the reopening of the assessment under section 147 of the Income Tax Act, 1961, sanction granted under section 151 of the Income Tax Act, 1961 and addition of Rs. 2,23,50,000 on account of share application money under section 68 of the Income Tax Act, 1961.
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