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2020 (8) TMI 797 - AT - Income TaxReopening of assessment u/s 147 - non disposing of the objection raised by the appellant - non-compliance of procedure - Non application of independent application of mind - HELD THAT:- Objections raised by the assessee to the reasons recorded for re-opening and the re-opening itself were not disposed off by the AO. Thus the completion of assessment without disposal of these objections, makes the assessment bad in law as held in the case of Rabo India Finance Ltd. vs. DCIT [2012 (7) TMI 519 - BOMBAY HIGH COURT] and in the case of Vishwanath Engineers vs. ACIT [2012 (5) TMI 146 - GUJARAT HIGH COURT]. Even otherwise Section 151 of the Act mandates recording of satisfaction by the approving authority. In this case the satisfaction was mechanical and in fact a rubber stamp was used to state “Yes I am satisfied”. Thus the assessment is bad in law for want of recording proper sanction u/s 151 - Even otherwise we find that the AO has not applied his mind to the information received from the Investigation Wing of the Department. He re-opened based on borrowed satisfaction. Re-opening based on incorrect, incomplete and vague facts is bad in law - Appeal of the Revenue is dismissed.
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