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2017 (6) TMI 599 - HC - Income TaxReopening of assessment - donation to an educational institution - approval from competent authority - Held that:- The Form for recording the reasons for initiating the proceedings under Section 148 for obtaining approval of the CIT/Additional CIT itself proceeds on the erroneous basis that the quantum of income which had escaped assessment was ₹ 28,75,000/- whereas the assessee had filed income returns of merely ₹ 20,56,145/- and it is on this basis that the Additional CIT and the CIT granted their approval. However, the CIT's date of approval is not recorded in the Form even though it is mentioned in the letter dated 28th January, 2016. The Petitioner had highlighted this fundamental error at the initiation of the case by stating that his income was mentioned as ₹ 20,56,145/- instead of ₹ 69,71,191/-. This was summarily rejected by the Respondent by an order dated 14th October, 2016 stating that the amount of ₹ 20,56,145/- instead of ₹ 69,71,191/- being mentioned as the income of the Petitioner was a clerical mistake and that the latter figure would be treated as his income. It is evident that the sanction of the Principal CIT as disclosed with the letter dated 25th May 2016 was obtained ex post facto. The Court is, however, of the view that if the correct income i.e. ₹ 69,71,191/- had been put before the CIT at the time of seeking his approval, he might perhaps have taken a different view. There is nothing on record to show that the clerical mistake of substituting ₹ 20,56,145/- for ₹ 69,71,191/- was ever brought to the notice of the CIT either before or after the so called approval/sanction under Section 151(1) of the Act. The initiation of the case for reopening of the assessment was erroneous and without application of mind especially since the AO had not examined the return filed, which if he had would have revealed that the Assessee had filed regular returns, had sufficient opening balance in his account and the withdrawals therefrom substantiated the donation made. - Decided in favour of assessee.
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