TMI Blog2017 (3) TMI 1232X X X X Extracts X X X X X X X X Extracts X X X X ..... pproval/satisfaction should be from the Chief Commissioner or Commissioner only. However, the case of the assessee has been reopened and notice u/s. 148 has been issued with the approval of the Addl. CIT, therefore, the notice u/s. 148 is bad in law and is quashed. See COMMISSIONER OF INCOME TAX Versus SPL'S SIDDHARTHA LTD [2011 (9) TMI 640 - DELHI HIGH COURT ] - Decided in favour of assessee - ITA No. 5783/Del/2016 - - - Dated:- 21-3-2017 - SHRI H.S. SIDHU, JUDICIAL MEMBER For The Assessee : Sh. Salil Kapoor and Sh. Sumit Lal Chandani, Advs. For The Department : M s. Bedobina Chaudhuri, Sr. DR ORDER The Assessee has filed the present appeal against the impugned order dated 5/9/2016 passed by the Ld. Commissioner of Income Tax (Appeals-5), Delhi on the following grounds:- 1. That the notice issued u/s 148 and the Assessment Order passed u/s 147/143(3) on 28.02.2014 of the Income Tax Act, 1961 are illegal, bad in law, without jurisdiction and barred by time limitation. 2. That the proceedings initiated under section 147/148 of the Act are invalid for want of jurisdiction as the preconditions for initiation of the said proceedings as stipulated in sect ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e are uncalled for. 15. That the observation and the additions made are unjust, illegal, arbitrary, bad in law, highly excessive and based on surmise conjecture. 16. That interest U / s 234A, 2348 and 234C of the Income Tax Act, 1961 has been wrongly and illegally charged and has been wrongly worked out. 17. That the applicant craves leave to add, amend, alter and/or delete any of the above grounds of appeal at or before the time of hearing. 2. The brief facts of the case are that the assessee company had filed a return at Rs. Nil on 29.11.2006. The assessment u/s 143(3) of the I.T. Act, 1961 was concluded at Nil income in order dated 24.12.2008. However, on the basis of search in the Surendra Kumar Jain group of cases (entry operator) and further inquiries, it was found by the AO that Shri Surendra Kumar Jain provided accommodation entries to various beneficiaries with the help of several bank accounts opened in the name of several proprietary concerns and companies in which either he himself or his employees were directors or proprietors, which information the AO received vide letter F.No. DIT(Inv)-II/U/s 148/2012- 13/197 dated 12.03.2013 of the Directorate ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assed in ITA No. 836 of 2011 dated 14.9.2011 wherein on exactly similar and identical facts and circumstances of the case, the appeal of the Revenue was dismissed. 6. Ld. DR relied upon the order of the authorities below and reiterated the view adopted by the Ld. CIT(A) in his impugned order and stated that in reopening was perfectly justified and there is no infirmity in this case. 7. I have heard both the parties and perused the records and the case law relied upon by the Ld. Counsel of the assessee. Since the Ld. Counsel of the assessee has not raised the ground nos. 1 to 7 9 to 17, therefore, the same are dismissed as not pressed. Accordingly, I am adjudicating upon only the ground no. 8 which is purely legal. I find that the assessee company had filed a return at Rs. Nil on 29.11.2006. The assessment u/s 143(3) of the I.T. Act, 1961 was concluded at Nil income in order dated 24.12.2008. However, on the basis of search in the Surendra Kumar Jain group of cases (entry operator) and further inquiries, it was found by the AO that Shri Surendra Kumar Jain provided accommodation entries to various beneficiaries with the help of several bank accounts opened in the name of sev ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of section 143 or section 147 has been made for the relevant assessment year/ no notice shall be issued under section 148 by an Assessing Officer/ who is below the rank of Assistant Commissioner or Deputy Commissioner/ unless the Joint Commissioner is satisfied on the reasons recorded by such Assessing Officer that it is a fit case for the issue of such notice: Provided that/ after the expiry of four years from the end of the relevant assessment year/ no such notice shall be issued unless the Chief Commissioner or Commissioner is satisfied/ on the reasons recorded by the Assessing Officer aforesaid/ that it is a fit case for the issue of such notice. (2) In a case other than a case falling under sub-section (1)/ no notice shall be issued under section 148 by an Assessing Officer/ who is below the rank of Joint Commissioner/ after the expiry of four years from the end of the relevant assessment year/ unless the Joint Commissioner is satisfied/ on the reasons recorded by such Assessing Officer/ that it is a fit case for the issue of such notice. 7.1 After perusing the aforesaid provisions, I am of the considered view that approval should be taken u/s. 151(1) and accordi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t will create chaos in the administration of law and hierarchy of administration will mean nothing. Satisfaction of one authority cannot be substituted by the satisfaction of authority. It is trite that when a state requires, a thing to be done in a certain manner, it shall be done in that manner alone and the court would not expect its being done in some other manner. It was so held in the following decisions: (i) C.I. T. v. Naveen Khanna (dated November 18, 2009 in I. T. A. No. 21 of 2009 (Delhi); (ii) State of Bihar v. J. A. C. Saldanha, AIR 1980 SC 326; and (iii) State of Gujarat vs Shantilal Mangaldas, AIR 1969 SC 634. Thus, if authority is given expressly by affirmative words upon a defined the expression of that condition excludes the doing of the Act under other circumstances than those as defined. It is also principle of law that if a particular authority has been designated to record his/her satisfaction on any particular issue, then it is that authority alone who should apply his/her independent mind to record his/her satisfaction and further mandatory condition is that the satisfaction recorded should be independent and not borrowed or dic ..... X X X X Extracts X X X X X X X X Extracts X X X X
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