TMI Blog2022 (10) TMI 978X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessment in a routine and casual manner, based on such approval, reopening of assessment by the A.O. is not at all sustained in the eye of law - Appeal of the assessee is allowed. - ITA No. 418/Del./2020 - - - Dated:- 4-10-2022 - SHRI CHANDRA MOHAN GARG , JUDICIAL MEMBER For the Assessee : Shri Anoop Sharma Shri Sanjay Parashar , Advocates For the Revenue : Shri Anuj Garg , Sr. DR ORDER This appeal by Assessee has been directed against the Order of the Ld. CIT(A)-1, Noida, dated 29.10.2018 relating to A.Y. 2010-11. 2. Briefly stated facts of the case are that the assessee filed return of income declaring income of Rs. 1,27,521/- on 28.09.2017 which is in compliance to notices issued under section 142(1) dated 22.05.2017 and 14.08.2017. The Department has received Non PAN AIR information regarding cash deposit of Rs. 21,55,000/- in the saving bank account of the assessee during the financial year 2009-10. Therefore, the case of the assessee was reopened under section 147 of the I.T. Act, 1961 by issuing notice under section 148 of the I.T. Act, 1961 on 24.03.2017. In compliance to the said notice, the Authorised Representative for the assessee appeared b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he assessment reopened by the Ld. AO and as confirmed by Ld. CIT(A) lacks mandatory conditions prescribed under section 147 of the Act, thereby, leading to invalid jurisdiction and illegal reassessment being made which is liable to be quashed. 3. That on the facts and in circumstances of the case and in law, the Ld. AO and Ld. CIT(A) erred in rejecting the explanation and evidences brought on record by the appellant to prove the identity, creditworthiness and genuineness of the transaction disallowed under Section 68 of the Act. 4. That on the facts and circumstances of the case and in law, the Ld. AO and Ld. CIT(A) erred in determining the addition under section 68 of the Act based on factually erroneous premises and built upon surmises and conjectures. 5. That the Ld. AO erred on facts and in law in initiating penalty proceedings under section 271(c) of the Income Tax Act, 1961. 6. The appellant craves leave to add, amend, alter or vary, any of the aforesaid grounds of appeal before or at the time of hearing of the appeal. 3.1. The assessee has also raised the following additional ground: That based on the facts and circumstances of the case and in l ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e case of Gurpal Singh vs., ITO, Ward-1, Kapurthala in ITA. No. 631/ASR/2015 dated 27.05.2016. 4.2. The Learned Counsel for the Assessee submitted that since the approval accorded by the competent authorities is in a mechanical manner and the Coordinate Benches of the Delhi Tribunal in the above cited appeals quashed such reopening of the assessment and thus, he, prayed that the reopening of the assessment made by the A.O. and confirmed by the Ld. CIT(A) be quashed and the addition be deleted. 5. The Ld. D.R. on the other hand strongly relied on the orders of the lower authorities. He submitted that the impugned addition has been made by the A.O. since the assessee has failed to discharge his onus caste on him to prove the genuineness of the cash deposit made by him in the bank account. Even before the Ld. CIT(A), the assessee has failed to put-forth his grievance with supporting documentary evidences to prove the genuineness and creditworthiness of the cash deposit made by him in his bank account. The Ld. D.R. accordingly prayed that the order of the Ld. CIT(A) be confirmed. 6. I have considered the rival arguments made by both the sides and perused the orders of the Asse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nformation Act, 2005, available on file as Annexure 'A'. Perusal of the sanction accorded by Addl. CIT in the prescribed proforma shows that there is a question No. 13 viz. 13. Whether the Addl. CIT is satisfied on the reasons recorded under section 147 that it is a fit case for issue of notice under section 148 of the IT Act. 11. In response to aforesaid question No. 13 in the prescribed proforma, Addl. CIT has written Yes. I am satisfied. No doubt, columns of reasons recorded was there and it is also mentioned in column No. 12 that reasons for belief that income has escaped assessment are as per annexure enclosed but such annexure has not been produced before the Bench for perusal. 12. Apparently, from the approval recorded and words used that Yes. I am satisfied. , it has proved on record that the sanction is merely mechanical and Addl. CIT has not applied independent mind while according sanction as there is not an iota of material on record as to what documents he had perused and what were the reasons for his being satisfied to accord the sanction to initiate the reopening of assessment u/s. 148 of the Act. 13. Even AO while recording the reason ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... A) found that reason recorded by Joint Commissioner of Income Tax, for according sanction, was merely recording 'I am Satisfied'-Action for sanction was alleged to be without application of mind and to be done in mechanical manner-Held, while according sanction, Joint Commissioner, Income Tax only recorded Yes, I am satisfied -Mechanical way of recording satisfaction by Joint Commissioner, that accorded sanction for issuing notice u/s. 147, was clearly unsustainable-On such consideration, both Appellate authorities interfered into matter-No error was committed warranting reconsideration-As far as explanation to S. 151, brought into force by Finance Act, 2008 was concerned, same only pertained to issuance of notice and not with regard to manner of recording satisfaction-Amended provision did not help Revenue-No question of law involved in matter, that warranted reconsideration-Revenue's Appeals dismissed. 15. The Hon'ble Delhi High Court has also decided this legal issue in case cited as Pr. CIT vs. N.C. Cables Ltd. in ITA 335/2015 order dated 11.01.2017 by returning following findings:- ITA Nos. 1375, 1721, 1722, 1523 1524/Del/2019 Reassessment-Issuan ..... X X X X Extracts X X X X X X X X Extracts X X X X
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