TMI Blog2022 (3) TMI 1230X X X X Extracts X X X X X X X X Extracts X X X X ..... isfied with the reason so approval given . This standard of approval cannot satisfy the test as to whether the Addl. CIT has applied his mind or not before approval was granted. It is noted that even this kind of approvals given by the higher authorities as contended by the Ld. DR has been found not to satisfy the test as to whether the approving authority has applied its mind to the information received by the AO and to the reason recorded by the AO justifying the re-opening as held in UNITED ELECTRICAL CO. P. LTD. [ 2002 (10) TMI 86 - DELHI HIGH COURT] and M/S S. GOYANKA LIME AND CHEMICALS LTD. [ 2015 (5) TMI 217 - MADHYA PRADESH HIGH COURT] Therefore, in my opinion, approval granted by the Addl. CIT, Shillong Range has been done in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... essee has raised seven (7) grounds of appeal, the assessee has raised the legal issue which is ground No. 3 which reads as under: For that the learned CIT(A) ought to have held that in absence of proper sanction under section 151 of the Act having been obtained, the impugned order passed under section 147 is bad in law and without jurisdiction. 4. From the perusal of ground No. 3, it is noted that the assessee is challenging the action of the AO to have reopened the assessment u/s. 147 of Income Tax Act, 1961 (hereinafter referred to as the Act) without getting proper sanction u/s. 151 of the Act. In order to buttress this legal issue, the Ld. AR of the assessee, Shri Sanjay Modi drew our attention to the Paper Book filed along wi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . AR, this action of the Ld. Addl. CIT giving approval for reopening of the assessment without assigning any reason at all is invalid and cannot be termed as a proper approval and is bad in law for non-application of mind and for this legal proposition, he relied on the following case laws: A. United Electrical Company (P) Ltd. Vs. CIT Ors. 258 ITR 317 (Del). In this case, approval by the Addl. CIT u/s. 151 was given in the following terms: Yes, I am satisfied that it is a fit case for issue of notice u/s. 148 of the Income Tax Act. Analyzing, the above satisfaction/approval, it has been held that the CIT is required to apply his mind to the proposal put up to him for approval in the light of the material relied upon by t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oval digitally also wherein it has been written I am satisfied with the reason, so approval given . Therefore, according to the Ld. DR, it is not an approval simplicitor and, therefore, the case laws relied upon by the Ld. AR cannot come to the rescue of the assessee and, therefore, he does not want this Tribunal to interfere with the approval granted by the Ld. Addl. CIT. In his rejoinder, the Ld. AR submitted that there cannot be two approvals. One in the file and another digitally which is different from other. The Ld. AR submitted that even if for argument sake, it is accepted that the Addl. CIT has written I am satisfied with the reason so approval given', still according to him it does not satisfy the test as to whether the appr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... still according to me the action of the Addl. CIT cannot satisfy the requirement of law which is expected from an authority while exercising approval before issuance of notice for re-opening. It should be kept in mind that approval u/s. 151 of the Act is a power given to the higher officer (Addl. CIT/Joint CIT) in certain cases like that of the assessee in this cases is for granting approval to re-open the assessment of the assessee which is a valuable safeguard to check against any arbitrary exercise of power by ITO/AO. This safeguard given by the Parliament to the higher officer cannot be granted mechanically or in a ritualistic manner. Merely by scribbling approved or for argument sake even if the Ld. Addl. CIT has written I am satisf ..... X X X X Extracts X X X X X X X X Extracts X X X X
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