TMI Blog2023 (3) TMI 364X X X X Extracts X X X X X X X X Extracts X X X X ..... ercise in the part of the Ld. PCIT for application of mind towards the said material which was gathered by the AO and the reasons recorded by him for the purpose of initiation of reassessment proceedings and issuance of notice u/s. 148 of the Act. Merely putting a seal as approving statement is not sufficient and make it clear that the approving authority has granted approval in a mechanical manner without application of mind to the relevant material and reasons recorded by the AO. Therefore the initiation of reassessment proceedings also fails on this count. Therefore additional grounds of assessee are allowed and initiation of reassessment proceedings, issuance of notice u/s. 148 of the Act and all consequent proceedings and orders are ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ade in impugned asst u/s 54B, are at complete variance and is impermissible in law, so once foundation of reasons itself become non-existent, then no further addition on any other issue /aspect can be made, accordingly impugned assessment order and first appeal order may please be quashed as nullity being founded on non-existent reasons; 6. That impugned reopening action us 148 is based on invalid and mechanical approval u/s 151 of PCIT Meerut which is given in ritualistic manner and without application of mind on part of approving authority, accordingly impugned assessment order and first appeal order may please be quashed as nullity being founded on invalid approval us 151 of 1961 Act. 7. That impugned reopening action us 148 is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... garding filing of return for A.Y. 2009-10, which is not available it reflects that no capital gain has been declared by the assessee on the sale of immovable property during A.Y. 2009-10. The learned counsel submitted that the copy of return of income available at page 8 and 9 clearly reveals that the assessee filed return of income for A.Y. 2009-10 on 30.09.2009 with ITO Ward-1(1), Meerut wherein the assessee declared capital gain income of Rs. 14,90,145/- accrued to him on account of sale of property. Therefore, the learned counsel submitted that the AO has proceeded to initiate reassessment proceedings u/s. 147 of the Act on basis of incorrect and wrong facts therefore only on this ground initiation of reassessment proceedings and all co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l No. Nature of transaction Value (Rs.) Transaction date Assessment Year 1 Sold Immovable Property Valued at Rs. 3000000 or more 1,02,00,000 24.06.2008 2009-10 In absence of PAN, information regarding filing of return for A.Y. 2009-10 is not available. This reflects that no capital gain has been declared by the assessee on above mentioned sale of property. In view of above, I have reasons to believe that capital gain arising on sale of above mentioned property has escaped assessment within the meaning of sec. 147 of the IT Act for A.Y. 2009-10 and such capi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Act is not a formal ritual but it is mandatory legislative requirement which has to be done after due application of mind to the material gathered by the AO and reasons recorded by him. The approving authority has to consider entire material before granting approval for initiation reassessment proceedings u/s. 147 of the Act and issuance of notice u/s. 148 of the Act. I am unable to agree with the contention of the learned Senior DR that the putting seal as statement of approval is sufficient as the any exercise in the part of the Ld. PCIT for application of mind towards the said material which was gathered by the AO and the reasons recorded by him for the purpose of initiation of reassessment proceedings and issuance of notice u/s. 148 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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