TMI Blog2019 (12) TMI 910X X X X Extracts X X X X X X X X Extracts X X X X ..... gh Gautam, Sr. DR. ORDER This appeal filed by the assessee is directed against the order passed by the Ld. CIT(A)-4, New Delhi on 29.03.2019 in relation to the assessment year 2010-11 on the following grounds:- 1. On the facts and circumstances of the case, the order passed by the learned Commissioner of Income Tax (Appeals) [CIT(A)] is bad, both 'in the eye of law and on the facts. 2. On the facts and circumstances of the case, ld. CIT(A) has erred both on facts and in law in rejecting the contention of the assessee that the initiation of the proceedings under Section 147, read with Section 148, made by A.O. is bad and liable to be quashed as the condition and procedure prescribed under the statute have not been satisfied and complied with. 3. On the facts and circumstances of the case, Id CIT(A) has erred both on facts and in law in rejecting the contention of the assessee that the initiation of the proceedings under Section 147, read with Section 148, made by A.O is bad and liable to be quashed as the reasons on the basis of which the reassessment is initiated has no live link between the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the Act in violation of principle of natural justice. 10. The appellant craves leave to add, amend or alter any of the grounds of appeal. 2. At the time of hearing, Ld. Counsel for the assessee has placed the copy of reasons recorded by the AO and approval granted by the Pr. Commissioner of Income Tax, Delhi-4, New Delhi for issuance of notice u/s. 148 of the Act. She stated that that the AO has erred in assumption of jurisdiction u/s. 147/148 of the Act on the basis of invalid and mechanical approval granted by the Pr. Commissioner of Income Tax, Delhi-4, New Delhi wherein it was mentioned Yes, on going through the reasons recorded by the AO, I am satisfied that it is a fit case for issue of notice u/s. 148 of the I.T. Act, 1961. , which shows that Ld. Pr. CIT, Delhi-4, New Delhi has not recorded proper satisfaction and without application of mind gave the approval in a mechanical manner. She further stated that this legal/jurisdictional ground is squarely covered by the decision of the ITAT, SMC, Bench, New Delhi dated 16.10.2019 in the case of Dharmender Kumar vs. ITO, Ward 65(5), New Delhi decided in ITA No. 2728/Del/2018 relevant to asses ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... quires that information or material on which Assessing Officer records his or her satisfaction has to be communicated to assessee, without mandating disclosure of any specific document. 5. PCIT, Vs Paramount Communication (P.) Ltd. Delhi High Court [2017] 79 taxmann.com 409 (Delhi)/[2017] 392 ITR 444 (Delhi) Information regarding bogus purchase by assessee received by DRI from CCE which was passed on to revenue authorities was 'tangible material outside record to initiate valid reassessment proceedings. 6. Paramount Communication (P.) Ltd. Vs PCIT Supreme Court 2017-TIQL-253- SC-IT SLP of assessee dismissed. Information regarding bogus purchase by assessee received by DRI from CCE which was passed on to revenue authorities was tangible material outside record to initiate valid reassessment proceedings. 7. Amit Polyprints (P.) Ltd. Vs PCIT Gujarat High Court [2018] 94 taxmann.com 393 (Gujarat) Where reassessment proceedings were initiated on basis of information received from Investigation wing that assessee had received certain amount from shell companies working ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ase for issuance of notice for reopening assessment, reassessment notice issued against assessee was justified. 5. I have heard both the parties and carefully considered the case laws and the relevant documents available on record especially the assessment order, impugned order, reasons/satisfaction/approval recorded for issue of notice u/s. 148 of the Act placed at page no. 18 of the Paper Book, which is a copy of performa for recording the reasons for initiating proceedings u/s. 148 for obtaining approval of Pr. CIT, Delhi-4, New Delhi who has granted the approval in a mechanical manner for issuing notice u/s. 148 of the Income Tax Act, 1961 vide Column No. 12 by mentioning as under:- Yes, on going through the reasons recorded by the AO, I am satisfied that it is a fit case for issue of notice u/s. 148 of the I.T. Act, 1961. 5.1 After perusing the aforesaid remarks of the Pr. CIT-4, New Delhi, I find that the approval granted by the Pr. CIT-4, New Delhi is a mechanical and without application of mind, which is not valid for initiating the reassessment proceedings, because from the aforesaid remarks, it is not coming out as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... application of mind to accord sanction for issuing notice under section 148, reopening of assessment was invalid Whether Special Leave Petition filed against impugned order was to be dismissed Held, Yes (in favour of the Assessee). 5.2 In the background of the aforesaid discussions and respectfully following the precedents, as aforesaid, I am of the considered view that approval granted by the Pr. CIT-4, New Delhi is a mechanical and without application of mind, which is not valid for initiating the reassessment proceedings issue of notice u/s. 148 of the I.T. Act, 1961 and is not in accordance with section 151 of the I.T. Act, 1961, thus, the notice issued u/s. 148 of the Act is invalid and accordingly the reopening in this is bad in law and therefore, the same is hereby quashed. Accordingly, the legal ground no. 6 raised by the assessee is allowed. Since the other grounds were not raised by the Assessee, the same are dismissed as such. Accordingly, the assessee s appeal is partly allowed. 6. In the result, the Appeal filed by the Assessee stands partly allowed Order pronounced on 18-12-2019. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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