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| The Tax Publishers2020 TaxPub(DT) 2190 (Del-Trib) INCOME TAX ACT, 1961
Section 151
Since approval granted by PCIT was a mechanical and without application of mind, which is not valid for initiating the reassessment proceedings, issue of notice under section 148 was not in accordance with section 151 and notice issued under section 148 was invalid and accordingly, the reopening was bad in law.
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Reassessment - Notice under section 148 - Sanction - Approval granted by competent authority in a mechanical manner
AO issued notice for reassessment under section 148 which assessee assailed the same contending that reassessment proceeding initiated by AO was contrary to specific provisions of section 147 to 151. Therefore, the said reassessment proceeding initiated alongwith the assessment order passed by AO on the foundation of such proceeding were liable to be quashed. Held: CIT was required to apply his mind to proposal put up to him for approval in the light of the material relied upon by AO. Approval granted by PCIT was a mechanical and without application of mind, which is not valid for initiating the reassessment proceedings, issue of notice under section 148 was not in accordance with section 151. Thus, notice issued under section 148 was invalid and accordingly, the reopening was bad in law.
Followed :National Thermal Power Company Limited v. CIT (1998) 229 ITR 383 (SC) : 1998 TaxPub(DT) 0342 (SC) CIT v. 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-HC) : 2002 TaxPub(DT) 1670 (Del-HC) Dharmender Kumar C/O Raj Kumar & Associates v. ITO [ITA No. 2728/Del/2018, dt.16-10-2019] : 2019 TaxPub(DT) 6944 (Del-Trib) CIT v. 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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