2015 (5) TMI 217 - HC - Income Tax

Reopening of assessment - Commissioner quashed the notice under section 148 also upheld by ITAT AS action for sanction by JCIT was without application of mind and as this was done in a mechanical manner - Held that:- While according sanction, the Joint Commissioner, Income Tax has only recorded so “Yes, I am satisfied”.

If the case in hand is analysed on the basis of the principle laid down in case of Arjun Singh [1998 (11) TMI 26 - MADHYA PRADESH High Court] the mechanical way of recording satisfaction by the Joint Commissioner, which accords sanction for issuing notice under section 148, is clearly unsustainable and we find that on such consideration both the appellate authorities have interfered into the matter. In doing so, no error has been committed warranting reconsideration.

As far as explanation to Section 151, brought into force by Finance Act, 2008 is concerned, the same only pertains to issuance of notice and not with regard to the manner of recording satisfaction. That being so, the said amended provision does not help the revenue - Decided against revenue.