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2014 (11) TMI 593 - AT - Income TaxReopening of assessment Contravention of section 151 or not - Whether the approval given by CIT(A) would meet the requirements prescribed u/s 151 - Held that:- In Amarlal Bajaj Versus Assistant Commissioner of Income-tax [2014 (1) TMI 1280 - ITAT MUMBAI] it has been rightly held that Sections 147 and 148 are charter to the Revenue to reopen earlier assessments and also protected by safeguards against unnecessary harassment of the assessee - They are sword for the Revenue and shield for the assessee - Section 151 guards that the sword of Sec. 147 may not be used unless a superior officer is satisfied that the AO has good and adequate reasons to invoke the provisions of Sec. 147 - The superior authority has to examine the reasons, material or grounds and to judge whether they are sufficient and adequate to the formation of the necessary belief on the part of the assessing officer - the Commissioner has simply put "approved" and signed the report thereby giving sanction to the AO - Nowhere the Commissioner has recorded a satisfaction note not even in brief - it cannot be said that the Commissioner has accorded sanction after applying his mind and after recording his satisfaction - the reopening is bad in law for the reason that the Ld.CIT-V, Delhi has not recorded his satisfaction as contemplated u/s 151 of the Act. Addition u/s 68 Unexplained credits Held that:- The assessee has furnished the following documents in support of transactions entered into by him CIT(A) rightly was of the view that the transaction regarding share application money and loan received by it were genuine transactions and the it were not accommodation entries there was no evidence collected by the AO which could prove otherwise - Accordingly, the AO was not justified in treating the amount of share application money and loan received by the appellant as its undisclosed income - there is no enquiry whatsoever by the AO and as the additions are not based on any material or evidence Decided against revenue.
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