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2017 (9) TMI 120 - HC - Income TaxReopening of assessment - reopening was after the expiry of four years from the end of the relevant AY - mandatory requirement under Section 151(2) - necessary approval - Held that:- Where the original assessment is processed under Section 143 (1) of the Act, and the reopening is sought to be done after the expiry of four years from the end of the relevant AY, the mandatory requirement under Section 151 (2) of the Act is that the approval for the reopening of the assessment should be by an officer of the rank of the Joint Commissioner (in this case, the Addl. DIT) and not other officer including a superior officer. The argument that the approval by an officer superior to the Joint Commissioner will satisfy the requirement of Section 151 (2) of the Act, was categorically negated by this court in the aforementioned decision in SPL’s Siddhartha Ltd. [2011 (9) TMI 640 - DELHI HIGH COURT] No hesitation in concluding that in the present case, the mandatory requirement under Section 151 (2) of the Act, as it stood at the relevant time, has not been fulfilled and therefore, the reopening of the assessment for the AY 2005-06 by the impugned notice is bad in law. For the aforementioned reasons, the notice dated 28th March 2012 issued by the AO to the petitioner under Section 148 of the Act and the order dated 25th January 2013 passed by the AO rejecting the Petitioner’s objections thereto are hereby quashed. - Decided in favour of assessee.
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