TMI Blog2021 (6) TMI 1060X X X X Extracts X X X X X X X X Extracts X X X X ..... C.A Revenue by : Shri G.S. Bali, D.R Order N.K. SAINI, J. This is an appeal by the assessee against the order dt. 20/06/2019 of Ld. CIT(A)- 1Jalanadhar 2. Following grounds have been raised in this appeal. 1. That the order passed by the Hon'ble CIT(A) dated 20.06.2019 is against the law and facts of the case. 2. That having regard to the facts and circumstances of the case, Hon'ble CIT(A) has erred in law and on facts in confirming the action of Ld. A.O. in framing the impugned assessment order u/s 143(3) r.w.s 147 and without complying with the mandatory conditions u/s 147/148 as envisaged under the Income Tax Act, 1961. 3. That having regard to the facts and circumstances of the case, Hon'ble CIT(A) has erred in law and on facts in confirming the action of Ld. A.O. in making an addition of ₹ 50,95,670/- on account of cash deposit in bank account, by ignoring the facts of the case and submissions of assessee and without observing the principles of natural justice. 4. That the appellant craves the leave to add, modify, amend or delete any of the grounds of appeal at the time of hearing and all the above grounds are without prej ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in assessment proceedings, although not raised earlier. The view that the Tribunal is confined only to issues arising out of the appeal before the Commissioner (Appeals) is too narrow a view to take of the powers of the Tribunal. It has further been held that : Undoubtedly, the Tribunal has the discretion in allow or not to allow a new ground to be raised. But where the Tribunal is only required to consider the question of law arising from facts which are on record in the assessment proceedings, there is no reason why such a question should not be allowed to be raised when it is necessary to consider that question in order to correctly assess the tax liability of an assessee. 7.1 From the aforesaid additional ground raised by the assessee it would be clear that the assessee has challenged the jurisdiction assumed by the A.O. under section 147 r.w.s 148 of the Act without complying with mandatory requirement and conditions envisaged under section 151 of the Act. 8. The facts related to this issue in brief are that the A.O. on the basis of AIR information that the assessee had deposited cash amounting to ₹ 25,00,000/- in saving bank account maintained with Punjab ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Delhi in the ITAT Delhi Bench, ITA No. 5407/Del/2018 dt. 19/12/2019 Dharmender Kumar Vs. ITO in the ITAT Delhi Bench, ITA No. 2728/Del/2018 dt. 16/10/2019 Ghanshyam Vs. ITO in the ITAT, Agra Bench, ITA Nos. 129 238/Agra/2018 United Electrical Company (P) Ltd. Vs. CIT Ors. High Court of Delhi, (2002) 258 ITR 317 (Del) Ladhuram Laxmi Narayan Vs. ITO, Additonal (1976) 102 ITR 595 (Gauhati) P. Munirathnam Chetty And P.. Vs. ITO, C-Ward And (1975) 101 ITR 385 (AP) Copies of the aforesaid case laws were furnished which are placed on record. 13. In his rival submissions the Ld. DR strongly supported the impugned order passed by the Ld. CIT(A) and further submitted that the A.O. after obtaining the approval from the Ld. JCIT under section 151 of the Act issued notice under section 148 of the Act for reopening the assessment under section 147 of the Act. It was stated that the A.O. after recording the reasons applied, his mind and reopened the assessment. 14. We have considered the submissions of both the parties and perused the material available on the record. In the present case it is noticed that the A.O. obtained the approval of the JCIT before is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... has been taken by the Hon'ble Andhra Pradesh High Court in the case of P. Munirathnam Chetty And P. Vs. ITO, C-Ward 101 ITR 385 (supra)wherein it has been held as under: The form like the one which is being used containing an endorsement merely saying Yes would justifiably cause apprehension that the act of the Commissioner is a mechanical act. In order to obviate this impression and to infuse more confidence in the assessee, it would be proper if the Commissioner also briefly slates why he has given his sanction to the proceedings under Section 147, thus avoiding all arguments in courts of law whether he applied his mind or he would have been satisfied in the circumstances of the case or not. 14.3 On an identical issue the ITAT Chandigarh Bench B Chandigarh vide order dt. 15/03/2021 in ITA No. 215/Chd/2020 for the A.Y. 2009-10 in the case of Shri Tek Chand Vs ITO, Ward-2, Kaithal held as under: 14.1 The A.O. obtained the approval of the PR. CIT before issuing the notice under section 148 of the Act. The proposal dt. 11/03/2016 seeking the approval for issuance of notice under section 148 of the Act, by the A.O. is placed at page no. 2 3 of the assessee s paper b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... reconsideration. 14.3 Against the said order, the Hon'ble Apex Court dismissed the SLP filed by the Department and affirmed the order of the Hon'ble M.P. High Court in the case of CIT Vs. S. Goyanka Lime Chemicals Ltd. (supra) held as under: that where Joint Commissioner recorded satisfaction in mechanical manner and without application of mind to accord sanction for issuing notice under section 148, reopening of assessment was invalid. 15. We therefore by following the ratio laid down by the Hon'ble Apex Court in the aforesaid referred to case, are of the view that the reopening under section 148 of the Act on the basis of mechanical approval without applying the mind by the Ld. Pr.CIT was not valid. Therefore, in the present case, the reopening of the assessment on the basis of notice under section 148 of the Act is quashed. 14.4 In the present case also since the A.O. reopened the assessment under section 147 of the Act by issuing the notice under section 148 of the Act, on the basis of mechanical approval, without applying his mind, therefore the said approval was not valid and consequently the reopening of the assessment on the basis of said appro ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
