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2019 (9) TMI 811 - AT - Income TaxReopening of assessment u/s 147 - notice on the basis of audit objection after getting approval - addition invoking provision of section 40A(3) - HELD THAT:- As gone through the reasons recorded by the Assessing Officer/ITO, Ward-Katihar for reopening and the approval thereof by the Ld. Jt.. CIT, Range-1, Bhagalpur and found that the AO has not applied his mind so as to come to an independent conclusion that he has reason to believe that income has escaped during the year. AO has mechanically issued notice u/s. 148 of the Act, on the basis of audit objection. The reopening in the case of the assessee for the Asstt. Year in dispute is bad in law and deserves to be quashed. The superior authority has to examine the reasons, material or grounds and to judge whether they are sufficient and adequate to the formation of the necessary belief on the part of the assessing officer. If, after applying his mind and also recording his reasons, howsoever briefly, the Commissioner is of the opinion that the AO's belief is well reasoned and bonafide, he is to accord his sanction to the issue of notice u/s. 148 of the Act. In the instant case, find from the perusal of the order sheet which is on record, the Jt. CIT has simply put "Yes" and signed the report thereby giving sanction to the AO. Nowhere the Jt. CIT has recorded a satisfaction note not even in brief. Therefore, it cannot be said that the Jt. CIT has accorded sanction after applying his mind and after recording his satisfaction - no hesitation to hold that the reopening proceedings vis-à-vis provisions of Sec. 151 of the Act are bad in law and the assessment has to be declared as void ab initio. - Decided in favour of assessee
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