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2021 (3) TMI 881 - ITAT DELHIReopening of assessment u/s 147 - addition u/s 68 - validity of reason to believe - approval under section 151 given by CIT - HELD THAT:- A.O. has recorded wrong, incorrect and non-existing reasons while reopening of the assessment and was not having any tangible material with him to form a belief that income chargeable to tax has escaped assessment. There is no live link established between the so-called material or the escapement of income so as to validly initiate reassessment proceedings against the assessee. Thus, there is a total non-application of mind on the part of the A.O. to refer the reasons for reopening of assessment. Thus, such reopening of the assessment is invalid and bad in Law and is liable to be quashed. We, accordingly, set aside the orders of the authorities below and quash the reopening of assessment in the matter. Resultantly, all additions stands deleted. A.O. after recording the reasons for reopening of the assessment has referred the matter to the Addl. CIT for approval of the Pr. CIT under section 151 - Addl. CIT has referred the matter to Pr. CIT who has approved the reopening of the assessment in which the Pr. CIT has mentioned “approved as per proforma”. However, no such proforma is also placed on record. It would show that the Pr. CIT has not gone into the assessment record of the assessee or the return of income before approving the reasons recorded for reopening of assessment because the assessee has already disclosed ₹ 95 lacs received from the Investor company in 04 transactions in assessment year under appeal, but, the A.O. in the reasons recorded has mentioned that assessee has received an amount of ₹ 50 lacs only in 02 transactions from the Investor Company. Pr. CIT merely approved the reasons without saying anything. Pr.CIT has recorded his satisfaction for reopening of the assessment in a most mechanical manner without considering even the assessment records or the return of income filed by assessee and his satisfaction appears to be in a ritualistic and formal rather than meaningful. Therefore, such approval under section 151 of the I.T. Act, 1961, is totally without application of mind and as such the satisfaction cannot be said to be valid in the eyes of Law. The reassessment order, thus, passed is also invalid and bad in Law - Decided in favour of assessee.
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