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2018 (6) TMI 145 - AT - Income TaxReopening of assessment - approval u/s 151 from the CIT before issuing notice u/s 148 - casual approach in granted approval - unexplained cash credit u/s. 68 - non application of mind by the Additional Commissioner before granting the approval - Held that:- United Electrical Co. Pvt. Ltd. Vs CIT [2002 (10) TMI 86 - DELHI HIGH COURT] has held if the Additional Commissioner had cared to go through the statement of the said parties, perhaps he would not have granted his approval, which was mandatory in terms of the proviso to sub-section (1) of section 151 of the Act as the action under section 147 was being initiated after the expiry of four years from the end of the relevant assessment year. The power vested in the Commissioner to grant or not to grant approval is coupled with a duty. The Commissioner is required to apply his mind to the proposal put up to him for approval in the light of the material relied upon by the Assessing Officer. The said power cannot be exercised casually and in a routine manner. We are constrained to observe that in the present case there has been no application of mind by the Additional Commissioner before granting the approval. In the present case Commissioner has simply mentioned “approved” to the report submitted by the concerned AO. In the light of the ratios/observations of the Hon’ble High Court mentioned hereinabove, we have no hesitation to hold that the reopening proceedings vis-à-vis provisions of Sec. 151 are bad in law and the assessment has to be declared as void ab initio. Ground No. 1 of assessee’s appeal is allowed.
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