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2019 (4) TMI 1744 - AT - Income TaxReopening of assessment u/s 147 - as alleged approval given u/s 151 by the superior authorities is not in accordance with the law and was given in a mechanical manner and without application of mind - HELD THAT:- Hon'ble Delhi High Court in the case of Pr. CIT vs. N.C. Cables Ltd. [2017 (1) TMI 1036 - DELHI HIGH COURT] while deciding an identical issue has held that section 151 of the Act clearly stipulates that the CIT, who is the competent authority to authorize the reassessment notice has to apply his mind and form an opinion. Mere appending of the expression ‘approved’ says nothing. It is not as if the commissioner has to record elaborate reasons for agreeing with the noting put up before him. At the same time, satisfaction has to be recorded of the given case which can be reflected in the briefest possible manner. When such exercise appears to have been ritualistic and formal rather than meaningful which is the rationale for the safeguard of an approval by a higher ranking official, the finding of the Tribunal quashing the reassessment proceedings cannot be disturbed. - Hon'ble Supreme Court in the case of Chhugamal Rajpal vs. S.P. Chaliha & Ors [1971 (1) TMI 9 - SUPREME COURT] has held that where the commissioner had mechanically recorded permission and the important safeguards provided in the section 147 and 151 were lightly treated by the officer and the commissioner, the notice issued u/s 148 was held as invalid. - Decided in favour of assessee.
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