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2021 (1) TMI 949 - AT - Income TaxReopening of assessment u/s 147 - borrowed satisfaction - non independent application of mind by AO - argued approval granted u/s. 151 for issuance of notice u/s. 148 of the Act by the JCIT, Range-24, New Delhi was a mechanical approval, hence, initiation of proceedings u/s. 147 of the Act on this ground is also invalid - accommodation entries received - HELD THAT:- Reasons to believe recorded by the AO are mechanically based on borrowed satisfaction of Investigation Wing even does not disclose the nature of alleged accommodation entries whether loan, share application, share capital etc. The entire reasons to believe recorded by the AO is reproduction of conclusions drawn by the Investigation Wing. It is settled law that reopening of assessment based on the opinion and information wherein the AO has not investigated/enquired the matter independently, then the Department was not entitled to reopen the assessment. It is noted that AO has not investigated the matter himself and has not made any enquiry to corroborate the Information of the Investigation Wing on which basis the case of the assessee has been reopened, meaning thereby the AO has not applied his mind and only issued notice u/s. 148 of the Act. Thus, the AO has acted mechanically and without any independent application of mind. It is further noted that initiation of proceedings is based on non application of mind much less independent application of mind but is a case of borrowed satisfaction. Nothing is independently examined or considered by the AO which can demonstrate application of mind by him. Even otherwise, we find that Ld. Joint CIT, Range-24, New Delhi has granted the approval in a mechanical manner by mentioning only "Yes, I am satisfied that this is a fit case for issue of notice u/s. 148 of the I.T. Act." which is not valid for initiating the reassessment proceedings. Thereafter, the AO has mechanically issued notice u/s. 148 - Even otherwise, we find that Ld. Joint CIT, Range-24, New Delhi has granted the approval in a mechanical manner by mentioning only "Yes, I am satisfied that this is a fit case for issue of notice u/s. 148 of the I.T. Act." which is not valid for initiating the reassessment proceedings. Thereafter, the AO has mechanically issued notice u/s. 148 - Decided in favour of assessee.
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