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2018 (11) TMI 1917 - AT - Income TaxValidity of reopening of assessment u/s 147 - Valid approval u/s 151 required from the Additional Commissioner of Income Tax - HELD THAT:- For assuming proper jurisdiction while reopening of the assessment it was incumbent upon the AO to take approval from the competent authority as contemplated under section 151 of the Act. If such procedure was not followed, then the AO would have acted without jurisdiction. This issue would ultimately go to the root of the dispute because this is a jurisdictional issue. It does not require any discovery of new facts, because if approval is taken, then it must be on the assessment record. There would be no requirement of fresh investigation of facts. Therefore, we admit this ground of appeal and proceed to adjudicate the grounds on merit. We have perused every approval. We find that the ld.Additional Commissioner has neither written “yes” nor “no” against the column, what to talk of his satisfaction for authorizing the AO to reopen the assessment. The Hon’ble Gujarat High Court in the case of Adani Port 2013 (5) TMI 660 - GUJARAT HIGH COURT has observed that sub-section (1) of section 151 of the Act is an important procedural safeguard against arbitrary exercise of power of issuing notice for reopening of the assessment previously framed. Now, the approval nowhere exhibits the satisfaction of the ld.Additional Commissioner. We deem it appropriate to take note of the finding of the Hon’ble Madhya Pradesh High Court in the case of CIT Vs. Goyanka Lime & Chemical Ltd. 2015 (5) TMI 217 - MADHYA PRADESH HIGH COURT. wherein the Hon’ble Court has observed that expression “yes, I am satisfied” also did not fulfill the requirement of section 151(1) because this does not spell out application of mind objectively We are satisfied that no proper approval was accorded by the ld.Additional Commissioner and the assessment orders are not sustainable. All the assessment orders are quashed in the cases of all the assesses - Assessee appeal allowed.
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