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2022 (3) TMI 1230 - AT - Income TaxReopening of assessment u/s 147 - absence of proper sanction u/s 151 - HELD THAT:- It should be kept in mind that approval u/s. 151 of the Act is a power given to the higher officer (Addl. CIT/Joint CIT) in certain cases like that of the assessee in this cases is for granting approval to re-open the assessment of the assessee which is a valuable safeguard to check against any arbitrary exercise of power by ITO/AO. This safeguard given by the Parliament to the higher officer cannot be granted mechanically or in a ritualistic manner. Merely by scribbling "approved" or for argument sake even if the Ld. Addl. CIT has written "I am satisfied with the reason so approval given". This standard of approval cannot satisfy the test as to whether the Addl. CIT has applied his mind or not before approval was granted. It is noted that even this kind of approvals given by the higher authorities as contended by the Ld. DR has been found not to satisfy the test as to whether the approving authority has applied its mind to the information received by the AO and to the reason recorded by the AO justifying the re-opening as held in UNITED ELECTRICAL CO. P. LTD. [2002 (10) TMI 86 - DELHI HIGH COURT] and M/S S. GOYANKA LIME AND CHEMICALS LTD. [2015 (5) TMI 217 - MADHYA PRADESH HIGH COURT] Therefore, in my opinion, approval granted by the Addl. CIT, Shillong Range has been done in a ritualistic manner mechanically without application of mind - the approval granted by the Addl. CIT is bad in law for non-application of mind. Therefore, the issuance of notice u/s. 148 by the AO without getting proper approval from the Addl. CIT as per section 151 being invalid, the action of the AO issuing notice u/s. 148 of the Act is without jurisdiction and, therefore, consequently framing of assessment order is bad in law and accordingly quashed. - Decided in favour of assessee.
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