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2020 (2) TMI 459 - AT - Income TaxReopening of the assessment u/s 147 - validity of sanction granted u/s 151 - addition on account of share application money u/s 68 - HELD THAT:- The assessee filed copy of the sanction granted by Competent Authority to the reasons recorded for reopening of the assessment. Copy of the same is filed in which Addl. Commissioner of Income Tax has mentioned “Yes, I am satisfied”. The Commissioner of Income Tax, Ghaziabad noted “Yes I am satisfied. It is a fit case to issue notice under section 148.” Such an approval is not valid in Law because it would show that approval have been granted without application of mind. Hon’ble Delhi High court in the case of United Electrical Co. Pvt. Ltd., vs. Commissioner of Income Tax 2002 (10) TMI 86 - DELHI HIGH COURT in which approval by Addl. Commissioner of Income Tax under section 151 was given in the following terms “Yes, I am satisfied that it is a fit case for issue of notice under section 148 of the I.T. Act”, similarly worded approval did not approve the same and held that “In the present case, there has been no application of mind by Addl. CIT before granting approval.” Therefore, we are of the view that reopening of the assessment is bad in Law and that sanction/approval granted by the Competent Authority is also invalid. Considering the totality of the facts and circumstances of the case, we are of the view that reopening of the assessment is illegal, bad in Law and void abinitio. - Decided in favour of assessee.
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