Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2019 (8) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2019 (8) TMI 1121 - ITAT DELHIReopening of the assessment u/s 147 - whether obtaining necessary approval u/s 151? - borrowed satisfaction - non independent application of mind - HELD THAT:- Both the approving authorities have given approval in a mechanical manner without due application of mind, therefore, such reassessment proceedings have to be treated as not in accordance with law and has to be quashed. Perusal of the reasons recorded show that the notice has been issued in a mechanical manner without independent application of mind by the AO and the satisfaction by the Assessing Officer is based on borrowed satisfaction of the Investigation Wing. AO without applying his mind, has simply, on the basis of the information of the Investigation Wing, jumped to the conclusion that there is escapement of income. The reasons so recorded do not show that there is any application of mind by the Assessing Officer for reaching the conclusion that there was escapement of income except the information from the Investigation Wing. The Hon'ble Delhi High Court in a number of decisions has held that reopening of assessment on the basis of report of the Investigation Wing without independent application of mind by the Assessing Officer is not in accordance with law and accordingly the reassessment proceedings have been quashed. Tribunal in the case of M/s SBS Realtors (P) Ltd. vs. ITO [2019 (4) TMI 357 - ITAT DELHI] has also quashed the reassessment proceedings based on the information provided by the Investigation Wing without any independent application of mind. It was held that there was no tangible material which formed the basis for the belief that income has escaped assessment. - Decided in favour of assessee.
|