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2021 (3) TMI 20 - AT - Income TaxValidity of Reopening of assessment u/s 147 - Assessment reopened after four years from the end of the relevant assessment year - as argued AO non satisfying the condition precedent as prescribed in clause (b) of section 149 of the Act as well as the Ld. PCIT/CIT should not have given the sanction to issue notice u/s. 148 on the reasons recorded by AO as a fit case, without satisfying the legal requirement of section 149 of the Act and, therefore, the sanction of PCIT/CIT is bad in law for non-application of mind - HELD THAT:- AO should not have issued notice without satisfying the condition precedent as laid down in clause (b) of section 149(1) of the Act. And the Ld. PCIT/CIT should not have given sanction to reopen on the basis of the reasons recorded by AO without satisfying the condition precedent as prescribed in section 149 of the Act. Failure to do so, makes the sanction of the authority u/s. 151 of the Act fragile for non-application of mind. Thus without satisfying both the legal requirements as stipulated u/s 149 and section 151 of the Act, the jurisdictional conditionprecedent, the AO could not have validly reopened the assessment by issuing notice u/s. 148 of the Act and in such an event, the AO does not enjoy jurisdiction to have validly reopen the assessment. And it is noted that this issue is no longer res integra and the Hon’ble Allahabad High Court in the case of Amar Nath Agarwal [2014 (10) TMI 8 - ALLAHABAD HIGH COURT] Reasons are to be examined only on the reasons as recorded. Here, in this case, as noted the condition precedent as required u/s. 149(1)(a) and (b) having not been satisfied and since it was an essential ingredient for seeking the sanction u/s. 151 of the Act, the omission is fatal to the issue of notice u/s. 148 of the Act. Therefore, the AO lacked jurisdiction to issue notice u/s. 148 of the Act and, therefore, all consequent action is null in the eyes of law. And, therefore confirm the action of the Ld. CIT(A) and dismiss all the four appeals of the revenue.
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