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2020 (1) TMI 786 - HC - Income TaxValidity of reopening of assessment u/s 147 - as argued mandatory prior approval required under Section 151 from the Principal Commissioner, Income Tax, Noida, was not obtained before initiation of the aforesaid reassessment proceedings - HELD THAT:- Satisfaction arrived at by the authority satisfies all the requirements of law as contemplated under Section 147 of the I.T. Act, 1961 and explained by judicial pronouncements in that regard. The petitioner was granted full opportunity to state his case before the authorities in his objections against the issuance of notice under Section 148 of the I.T. Act, 1961 for the Assessment Year 201213. The petitioner duly availed the aforesaid remedy. The authorities while deciding the objections of the petitioner passed detailed speaking orders which again reflect due application of mind on the facts and material in the record. The Deputy Commissioner of Income Tax, Circle5( 1) (1), Gautam Buddh Nagar while disposing of the aforesaid objection of the petitioner against issuance of the notice under Section 148 in its order dated 26.11.2019 considered the objections of the petitioner. The objections of the petitioner were dealt with on a point to point basis. While passing the order dated 26.11.2019 the competent Revenue Authority found that necessary prerequisite of Section 147 that “there should be an escapement of income” stood fulfilled. The reasons recorded in that regard were found to be valid. The authority also noticed the admission of the assessee that he had “incurred Long Term Capital Gain of ₹ 47,43,264/during Financial Year 201112, however, the same has not been disclosed in his ITR The validity of the refusal of the request of the petitioner to cross examine Ashok Kumar Kayan, Sunil Kumar Kayan, Devesh Kumar Kayan whose statements were part of the material, was also affirmed as held Income Tax Act, 1961 does not have any provision which may empower the undersigned to enforce the cross examination of a third party by the assessee. However, the statements of Shri Ashok Kumar Kayan are being provided to the assessee for ready reference. Approval under Section 151 of the I.T. Act, 1961, prior to initiation of proceedings under Section 148 of the I.T. Act, 1961 is a jurisdictional prerequisite. In the absence of such approval the proceedings would fall to the ground for want of jurisdiction. As such, the assessee is fully entitled to a copy of the order passed under section 151 of the I.T. Act, 1961 and correspondingly, the Assessing Officer is obliged to handover a copy of the same, as and when the assessee seeks for it. There is no infirmity in the reassessment proceedings and the same are not liable to be interfered with.
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