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2018 (7) TMI 371 - AT - Income TaxValidity of initiation of proceedings u/s 148 - validity of reason assigned by the AO in the purported 'reasons to believe' - approval in accordance with law - Commissioner/board satisfaction on the reasons recorded by the ITO/IAC(A) that it is a fit case for the issue a notice - Held that:- As per the mandate of section 151 (2) of the Act, the Competent Authority has to examine the reasons, material or grounds on which the reopening is sought to be based and to judge as to whether they are sufficient and adequate to the formation of the necessary belief of escapement of income from taxation on the part of the AO. It is if and only if the Competent Authority, after applying his mind, is of the opinion that the AO’s belief is well reasoned and bonfide, that he will accord his sanction thereon. Also In ‘Chhugamal Rajpal vs. S.P. Chaliha’ (1971 (1) TMI 9 - SUPREME COURT), it has been held that where the Commissioner, while granting the sanction just noted the word “Yes” and affixed his signature thereunder, he had only mechanically accorded permission, and that the important safe-guards provided in section 151 were lightly treated. Thus the approval granted by the Pr. CIT in the present case, is also found to be unsustainable in law and the same is quashed alongwith all proceedings pursuant thereto - Decided in favour of assessee.
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