Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2024 (2) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2024 (2) TMI 541 - ITAT DELHIValidity of reopening of assessment - valid approval granted by the Pr. CIT or not? - "reason to believe" or "reason to suspect" - Unexplained cash credit - assessee got the illegal gratification from Mr. Amit Sharma in lieu of the contracts awarded to him and the figure mentioned in the loose papers or the figures of illegal gratification - HELD THAT:- As there were factual mistakes in the reasons recorded and there is no independent application of mind by the A.O. and the approval has been granted on the very same reasons which were earlier discarded by the Office of the JCIT. There is also contradiction with the claim made before the Settlement Commission by the very same PCIT and the reasons recorded. Thus, in our opinion, the approval granted by the Pr. CIT is a mechanical approval. A.O. made addition on the ground that the assessee got the illegal gratification from Mr. Amit Sharma in lieu of the contracts awarded to him and the figure mentioned in the loose papers or the figures of illegal gratification and the same is taxable as unexplained cash credit in the hands of the assessee. The assessee during the year 2016 had taken a rented accommodation from one Mr. Amit Sharma, Dehradun to substantiate the said claim, the assessee produced the rent Agreement - A.O. mentioned several wrong facts in the reasons. Further, the case of the father of the assessee was reopened u/s 148 of the Act, but no addition has been made on the said issue. From reading the above facts and circumstances it is clear that the A.O. has entertained a wrong belief and was not having tangible material on the basis of which a person having common prudence can entertain a belief that any income has escaped assessment. As there is no independent application of mind by the A.O, there is an approval on the very same reasons which were earlier discarded by the Office of the JCIT and there is a contradiction compared to submissions made before the Settlement Commission by the very same officer, therefore, it can be safely concluded that the approval granted u/s 151 of the Act by the Office of PCIT is mechanical approval and hence the assumption of jurisdiction by the A.O. is bad in law. Decided in favour of assessee.
|