TMI Blog2022 (1) TMI 694X X X X Extracts X X X X X X X X Extracts X X X X ..... w the assessment order under Section 263 of the said Act and the Principal Commissioner of Income Tax - 14 has also passed an order directing the proceedings initiated under Section 263 of the said Act to be dropped and the Revenue Audit to be accordingly informed that the objection raised was not accepted. Notwithstanding this order passed by the Principal Commissioner of Income Tax - 14, a notice is issued under Section 148 of the said Act and one of the ground is the same point which was directed to be dropped by the Principal Commissioner of Income Tax - 14 and the same Principal Commissioner of Income Tax - 14 has accorded the approval under Section 151 of the said Act on 30th March 2019. Therefore, this only shows that there has been ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t up to him for approval in the light of the material relied upon by the Assessing Officer. Such power cannot be exercised casually, in a routine and perfunctory manner. We have to observe that if only the PCIT had read the file, he would not have been satisfied with the reasons. Petition allowed. - WRIT PETITION NO.3555 OF 2019 - - - Dated:- 13-1-2022 - K.R. SHRIRAM N.R. BORKAR, JJ. Mr. Percy Pardiwalla, Senior Advocate a/w. Mr. Atul K. Jasani for petitioner. Mr. Suresh Kumar for respondents. P.C. : 1 Petitioner had filed its return of income for Assessment Year 2012-2013 on 26th November 2012 declaring total income at ₹ 5,23,81,63,452/- and book profit under Section 115JB of the Income Tax Act, 1961 (the s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is disposed of, the profit/loss on account of the same is recognized. In the instant case, the assessee company has added back this deduction under normal provisions of the Act but the same was not added while computing income under MAT provisions u/s 115JB of the Act. Hence, the Assessing Officer has erred while making addition in the assessment order. .. 3. Petitioner responded by a letter dated 21st July 2016 through its Chartered Accountants and explained to the Principal Commissioner of Income Tax - 14 as to why his opinion that there was an error in the assessment order passed under Section 143(3) of the said Act was erroneous. After considering the reply and also a personal hearing, the Principal Commissioner of Income Ta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssment order under Section 263 of the said Act and the Principal Commissioner of Income Tax - 14 has also passed an order directing the proceedings initiated under Section 263 of the said Act to be dropped and the Revenue Audit to be accordingly informed that the objection raised was not accepted. Notwithstanding this order passed by the Principal Commissioner of Income Tax - 14, a notice is issued under Section 148 of the said Act and one of the ground is the same point which was directed to be dropped by the Principal Commissioner of Income Tax - 14 and the same Principal Commissioner of Income Tax - 14 has accorded the approval under Section 151 of the said Act on 30th March 2019. Therefore, this only shows that there has been total non ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 7. We have to note that in the affidavit in reply also respondents admit that the PCIT is required to accord approval on reasons recorded by the Assessing Officer after having satisfied himself that such reasons were on the basis of the technical information in possession. As held in German Remedies Ltd. (Supra) to grant or not to grant approval under Section 151 of the said Act to re-open an assessment is coupled with a duty and the Commissioner was duty bound to apply his mind to the proposal put up to him for approval in the light of the material relied upon by the Assessing Officer. Such power cannot be exercised casually, in a routine and perfunctory manner. We have to observe that if only the PCIT had read the file, he would not h ..... X X X X Extracts X X X X X X X X Extracts X X X X
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