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2016 (2) TMI 1094 - AT - Income TaxApplicability of the provisions of section 151 - reopening of assessment - notice issued without obtaining the prior sanction of the authority mentioned - Held that:- As gone through the letter dated 25.03.2011 which states “approval for the issue of notice u/s 148 – reg.”. This letter subsequently talks of according of the approval and further issue of the notice u/s 148. Section 151, in my opinion, does not talk of approval of the action of the AO but requires satisfaction of the Joint Commissioner on the reasons recorded by the AO that it is a fit case for the issue of such notice. There is difference in the word ‘satisfaction’ and ‘approval’. Approval can be subsequent to the occurrence of the events while the satisfaction, as per the provisions of section 151, has to be prior to the issue of the notice. Satisfaction represents a decision based on the material on record. As noted what the Addl. Commissioner of Income-tax has approved the issuing of the notice u/s 148. He has not given any finding that on the basis of the reasons recorded by the AO, he is satisfied that it is a fit case for the issue of the notice u/s 148 of the Act. What he has done, he has approved the proforma sent by the AO. This approval has also been received by the AO on 29.08.2011 i.e. after the issue of the notice u/s 148 dated 28.03.2011. This does not meet the requirement of the provisions of section 151 (2) and, therefore, quash the notice issued u/s 148 (2) as this was issued merely in a mechanical manner without applying the mind by the Addl. Commissioner to the reasons recorded by the AO.
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