2021 (1) TMI 234 - ITAT DELHI - Income Tax

Head Note / Extract:
Validity of reopening of assessment - Non-issuance of notice u/s. 143(2) - mechanical approval granted u/s. 151 - HELD THAT:- AO has completed the assessment u/s. 143(3)/147 of the Act on 10.11.2017 without issuing mandatory notice us. 143(2) which is against the law laid down in the case of ACIT vs. Hotel Blue Moon [2010 (2) TMI 1 - SUPREME COURT] wherein, it has been held that in the absence of the notice u/s. 143(2) of the Act the assessment framed by the Assessing Officer is liable to be quashed. Pr. CIT has granted the approval in a mechanical manner by putting only “Yes” which is not valid for initiating the reassessment proceedings. Thereafter, the AO has mechanically issued notice u/s. 148 of the Act. The reopening in the case of the assessee for the asstt. Year in dispute is bad in law and deserves to be quashed. Penalty u/s 271(1)(c) - HELD THAT:- Since as already quashed the reassessment and delete the addition in dispute in the quantum appeal, as aforesaid, hence, the penalty, does not stand in the eyes of law, therefore, the same is deleted as such, by also allowing this appeal of the assessee.