INCOME TAX ACT, 1961

Section 147

Reassessment - Validity - Assessee pleading non-supply of reasons recorded for issuance of notice under section 148, mechanical approval granted by Jt. CIT under section 151 and no independent application of mind by AO to investigation report -

AO received information from Investigation Wing as to assessee having made unexplained investments. Accordingly, AO reopened assessment. Assessee challenged this on the ground non-supply of reasons recorded for issuance of notice under section 148 , mechanical approval granted by JCIT under section 151 and no independent application of mind by AO to the information received. Held: There was nothing on record to suggest that in entire assessment proceedings, assessee objected to non-issuance of notice under section 148 and sought copy of reasons so recorded for reopening of assessment. Accordingly, there was no prejudice caused to assessee in terms of denial of any opportunity to assessee to object to reassessment proceedings by non-supply of reasons so recorded. Further, it was not a case where approval had been granted mechanically or without application of mind, rather Jt. CIT had gone through AO's proposal, his reasoning so recorded in the proposal, assessment and other records and finding the reasons so recorded to be in conformity with assessment and other records, accorded his approval. Furthermore, it was not merely on basis of the receipt of report of ITO (I & CI) that AO recorded the reasons rather after receipt of said report which was clearly a tangible piece of information brought to his notice, he examined return of income of assessee as well as other documents and submission filed by assessee and thereafter, arrived at his own independent view that income had escaped assessment and ,therefore, it could not be held to be a case of borrowed satisfaction. Accordingly, reopening of assessment was valid.

REFERRED :

FAVOUR : Against the assessee

A.Y. :

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