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TMI Blog2019 (12) TMI 916X X X X Extracts X X X X X X X X Extracts X X X X ..... ssment order passed on the foundation of such notice is liable to be quashed. The Ld. CIT(A) ought to have held the reassessment proceedings as illegal, void and without jurisdiction. 2. On the facts and circumstances of the case and in law, the CIT(A) erred in confirming the addition made by the AO of Rs. 5 lacs as alleged unexplained cash credit u/s. 68 of the Act. The addition made by the AO is not sustainable and CIT(A) ought to have deleted the same. 3. The alleged reasons given by AO and CIT(A) for making / confirming the additions of Rs. 5 lacs are erroneous, both on facts and in law and, therefore, the addition of Rs. 5 lacs made by the AO and confirmed by CIT(A) is liable to be deleted. 4. On the facts and circumstances of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he reassessment proceedings. 3. On the contrary, Ld. Sr. DR relied upon the orders of the authorities below and stated that the reasons recorded and satisfaction / approval accorded is within the meaning of section 151 of the Act and need not to be quashed. He stated that apart from relying on the order of the Ld. CIT(A), the following cases laws may kindly be considered with regard to reopening of cases u/s. 147 of the I.T. Act:- 1. Sonia Gandhi vs. ACIT (Delhi High Court) 29018) 97 taxmann.com 150 (Delhi). i) Where Congress Party gave loan to AJL and assigned said loan to non-profit YI which subsequently issued shares to assesses at a price less than FMV, non-disclosure by assesses of allotment of shares in YI would be a reason to in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . 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 reassess ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt on basis of said information was justified. 12. Home Finders Housing Ltd. Vs. ITO (2018) 94 taxmann.com 84 (SC). SLP dismissed against High Court's order that non-compliance of direction of Supreme Court in GKN Driveshafts (India) Ltd. Vs. ITO (2002) 125 Taxman 963 that on receipt of objection given by assessee to notice under section 148, Assessing Officer is bound to dispose objections by passing a speaking order, would not make reassessment order void ab initio. 13. Baldevbahi Bhikhabhai Patel vs. DCIT (Gujarat High Court) (2018) 94 Taxmann.co, 428(Gujarat) Where revenue produced bunch of documents to suggest that entire proposal of reopening of assessment alongwith reasons recorded by the Assessing Officer for same were place ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t. The judicial decisions relied upon by the Ld. Sr. DR, have been duly considered. In my considered view, I do not find any parity in the facts of the decisions relied upon with the peculiar facts of the case in hand. Keeping in view of the facts and circumstances of the present case and the case laws applicable in the case of the assessee, I am of the considered view that the reopening in the case of the assessee for the asstt. Year in dispute is bad in law and deserves to be quashed. I find considerable cogency in the contention of the Ld. Counsel for the assessee that the issue no. 1 raised in this appeal is squarely covered by the decision of the ITAT, SMC, Bench, New Delhi dated 01.03.2018 in assessee's own case decided in ITA No. 242 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ther Special Leave Petition filed against impugned order was to be dismissed - Held, Yes (in favour of the Assessee)." 4.2 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 Addl. CIT, Range-16, 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. 1 raised by the assessee i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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