TMI Blog2022 (6) TMI 954X X X X Extracts X X X X X X X X Extracts X X X X ..... uch reasons recorded by the Assessing Officer are available before the competent authority while according the approval, it cannot be said that the application of mind by the competent authority is presumed and there is no requirement for him to record the proper satisfaction and it is sufficient for him to say only Yes . In the case of United Electrical Co. Pvt. Ltd [ 2002 (10) TMI 86 - DELHI HIGH COURT] relied upon by the learned Counsel for the assessee, the Hon ble Delhi High Court held that the requirement of approval by the higher authority to reopen the assessment and issue notice under Section 148 of the Act by the Assessing Officer is a safeguard to prevent arbitrary exercise of power by an Assessing Officer to fiddle with th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... total income of the assessee was determined by the Assessing Officer at Rs.3,84,53,522/- after making an addition of Rs.3,79,39,222/-. Against the said order passed by the Assessing Officer under Section 143(3) of the Act, an appeal was preferred by the assessee before the learned CIT(A) who allowed the said appeal and deleted the entire addition made by the Assessing Officer. Thereafter, information was received by the Assessing Officer from DDIT (Inv.), Unit-1(2), Kolkata that the assessee has taken an accommodation entry of Rs.50 lakhs during the year under consideration. Based on the said information as well as the cash deposits found to be made by the assessee during the year under consideration amounting to Rs.57,45,000/- in its bank ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ort of his case. The learned CIT(A), however, did not find merit in the said submission and rejecting the same vide its appellate order dated 20.02.2019 passed in details, he upheld the validity of the assessment made by the Assessing Officer under Section 143(3) r.w.s. 147 of the Act and also confirmed the addition of Rs.50 lakhs made therein by the Assessing Officer under Section 68 of the Act. 4. Aggrieved by the order of the learned CIT(A), the assessee has preferred this appeal before the Tribunal. 5. In Ground Nos. 2 3 as originally raised in this appeal as well as in the additional ground raised during the course of appellate proceedings before the Tribunal, the assessee has challenged the validity of the reopening of the ass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s Ltd (supra) was challenged by the Revenue in an SLP before the Hon ble Supreme Court which was dismissed by the Hon ble Apex Court vide order dated 08.07.2015 in SLP No.11916 of 2015, [2015] 64 taxmann.com 313 (SC). The learned Counsel for the assessee has also relied upon the decision of Hon ble Delhi High Court in the case of United Electrical Co. Pvt. Ltd Vs. CIT, reported in 258 ITR 317 (Delhi HC) in support of assessee s claim on this issue. 6. The learned DR, on the other hand, submitted that the Assessing Officer, along with the proposal submitted to the learned Principal Commissioner of Income-tax for approval, had enclosed the reasons recorded by him for reopening the assessment on the basis of which notice under Section 148 w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and even the learned DR has not disputed this position. He, however, has contended that the approval accorded by the learned Principal Commissioner of Income-tax cannot be read in isolation and the same has to be read with reasons recorded by the Assessing Officer for reopening the assessment which were available before the learned Principal Commissioner of Income-tax and which were duly taken into consideration while according the approval. We are unable to accept this contention of the learned DR keeping in view the legal position emanating from the judicial pronouncements cited by the learned Counsel for the assessee. While seeking approval to reopen the assessment and issue notice under Section 148 of the Act, the Assessing Officer is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d Electrical Co. Pvt. Ltd (supra) relied upon by the learned Counsel for the assessee, the Hon ble Delhi High Court held that the requirement of approval by the higher authority to reopen the assessment and issue notice under Section 148 of the Act by the Assessing Officer is a safeguard to prevent arbitrary exercise of power by an Assessing Officer to fiddle with the completed assessment. It was held that the Commissioner is required 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 and the said power cannot be exercised casually and in a routine manner. In the said case, the Commissioner had simply mentioned approved while according sanction to the Assessing Of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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