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2022 (1) TMI 431 - HC - Income TaxReopening of assessment u/s 147 - Mandation of recording of satisfaction - HELD THAT:- Additional Commissioner of Income Tax and Principal Commissioner of Income Tax have also endorsed and expressed they are satisfied that it was a fit case for issuance of notice under Section 148 - The recommendations made by the Additional Commissioner and the approval granted by the Principal Commissioner in our view are without application of mind that the same appears to have been granted in a routine and perfunctory manner. It is settled law as held by the Division Bench of this court in German Remedies Ltd. [2005 (10) TMI 76 - BOMBAY HIGH COURT] that while granting approval it was obligatory on the part of the Principal Commissioner of Income Tax to verify whether there was any failure on the part of the assessee to disclose full and true relevant facts in the return of income filed for the assessment of income of that assessment order. If the PCIT had only read the reasons and also the form for recording the reasons together and referred to other documents in the file, none of which seems to have been done, he would have sent the file back to the person who has filled the form for recording the reasons. We are not certain it is Dhivya Ruth J who recorded the reasons or Jaya Lakhwani because now we find there are three sets of reasons instead of earlier two. Petitioner is justified in raising a contention that the approval granted itself suffered from non application of mind. In view of the above, the impugned notice and consequential order justifying reasons recorded are unsustainable. - Decided in favour of assessee.
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