TMI Blog2020 (1) TMI 88X X X X Extracts X X X X X X X X Extracts X X X X ..... in law and facts of the case while not considering that the Ld. AO has erred in concluding the assessment u/s. 144 of the Act without providing sufficient opportunity of being heard to the assessee before resorting the case to the best judgement assessment. As such the assessment order passed by the Ld. AO is arbitrary in nature and against the principle of natural justice. Therefore, order may please be quashed. 2. That the Ld. CIT(A) has failed to consider that the statutory requirements of law u/s. 151 of the Income Tax Act, 1961 have not been fulfilled as the approval granted by the Ld. Addl. CIT, Range-3, New Delhi was accorded without independent application of mind and in a mechanical manner. Hence, the reopening of this case is not valid and untenable as per law. As such, assessment is void-ab-initio and may please be quashed. 3. That the Ld. CIT(A) has erred in law and on facts while upholding the decision of the AO of making additions of ₹ 15,37,500/- on account of share capital received as camouflaged transaction without appreciating the submissions filed by the assessee. As such, the addition of ₹ 15,37,500.00 may please be dele ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... it is a fit case for issue of notice u/s. 148 of the I.T. Act. , which shows that Addl. CIT, Range-3, 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 no. 2 is squarely covered by the decision of the ITAT, SMC, Bench, New Delhi dated 01.03.2018 in the case of Tara Alloys Ltd. vs. ITO Ward 25(1), New Delhi decided in ITA No. 2421/Del/2017 relevant to assessment year 2005-06 and therefore, she requested that the same ratio may be followed in the present case and appeal of the assessee may be allowed accordingly by quashing the 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 (Delh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... essee 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 as an accommodation entry provider, reassessment could not be held unjustified. 8. Aaspas Multimedia Ltd. Vs PCIT Gujarat High Court [2017] 83 taxmann.com 82 (Gujarat) Where reassessment was made on basis of information received from Principal DIT (Investigation) that assessee was beneficiary of accommodation entries by way of share application provided by a third party, same was justified. 9. Murlibhai Fatandas Sawlani Vs ITO Gujarat High Court 2016-TIQL-370-HC- AHM-IT It is not open to the assessee to object to the reopening by asking the AO to produce the source from where the AO has gathered the information for forming a belief that income chargeable to tax has e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... O that it is a fit case for issue of notice u/s. 148 of the I.T. Act. 4.1 After perusing the aforesaid remarks of the Addl. CIT, Range-3, New Delhi, I find that the approval granted by the Addl. CIT, Range-3, 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 to which material; information; documents and which other aspects have been gone through and examined by the Addl. CIT, Range-3, New Delhi for reaching to the satisfaction for granting approval. Thereafter, the AO has mechanically issued notice u/s. 148 of the Act. 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 c ..... X X X X Extracts X X X X X X X X Extracts X X X X
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