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2021 (1) TMI 85 - ITAT DELHIReopening of assessment u/s 147 - invalidate sanction under section 151 - Addition u/s 68 - information was received from the office of the Director of Income-tax (Investigation-II), New Delhi that a search operation was carried out in the case of S.K. Jain group of cases wherein found that the said group has been providing accommodation entries to various persons and the assessee-company was also figured in the same list - HELD THAT:- As decided in VRC TOWNSHIP PVT. LTD.[2020 (10) TMI 1223 - ITAT DELHI]wrong Section have been mentioned in the reasons and some of the Columns material for re-assessment are left ‘Blank’ and that Addl. CIT did not record how he was satisfied on wrong facts and wrong reasons would clearly show that reopening have been done in the matter without application of mind based on wrong facts and as such the reopening of the assessment cannot be justified. It may also be noted here that the Learned Addl. CIT, Range-12, Delhi while granting sanction under section 151 of the I.T. Act has mentioned in the reasons that “Yes, I am satisfied that this is a fit case for reopening under section 147.” Such a satisfaction was not found valid by ITAT, Delhi Benches in the cases of Shree Balkishan Agarwal Glass Industries Ltd., Delhi [2020 (9) TMI 1153 - ITAT DELHI] and M/s. Behat Holdings Ltd., Delhi vs., ITO, Ward-4(3), New Delhi [2020 (1) TMI 1358 - ITAT DELHI] based on several decisions of the Hon’ble High Courts. Thus, the issue is covered against the Revenue by the above decisions of the Tribunal as well. The A.O. has thus no justification to assume jurisdiction under section 147 in a Lawful manner and as such the same are liable to be quashed. In view of the above discussion, we set aside the Orders of the authorities below and quash the reopening of the assessment. Resultantly, all additions stand deleted. Since we have quashed the reopening of the assessment, therefore, there is nothing to decide the issue of addition on merits. Appeal of the Assessee allowed.
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