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2023 (7) TMI 980 - AT - Income TaxValidity of reopening of assessment u/s 147 - non obtaining valid approval from the competent authority as per mandatory requirement u/s 151 - HELD THAT:- PCIT has given his approval u/s 151 of the Act in Column 13 of page 15 wherein, he has given a detailed basis based on the exercise undertaken by him, before granting approval u/s 151 - We are unable to see any discrepancy therein, which could show nonapplication of mind by the PCIT at the time of granting approval u/s 151. Non application of mind by the AO, at the time of initiation of reassessment proceedings - The text and words used by the AO in the reasons recorded for reopening of the assessment clearly shows that the AO proceeded to initiate assessment proceedings u/s 147 of the Act and to issue notice u/s 148 of the Act without having any valid satisfaction and assuming valid jurisdiction, only on the basis of borrowed satisfaction based on report of investigation wing only and there was no independent application of mind by the AO to the information and documents received from the Investigation Wing which could form a valid basis and reason to believe that income has escaped assessment. As decided in Meenashi Overseas [2017 (5) TMI 1428 - DELHI HIGH COURT] and PCIT Vs. RMG Polyvinyl [2017 (7) TMI 371 - DELHI HIGH COURT] where the reasons recorded by the AO failed to demonstrate link between the tangible material and the formation of reasons to believe that the income has escaped assessment, then, indeed it amounts to borrowed satisfaction and the conclusion of the AO based on reproduction of conclusion drawn in the investigation report cannot be held as valid basis and reason to believe after application of mind. AO did not assume valid jurisdiction for initiation of reassessment proceedings u/s 147 - Decided in favour of assessee.
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