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TMI Blog2024 (10) TMI 538X X X X Extracts X X X X X X X X Extracts X X X X ..... ITA No.2352/Del/2024 2007-08 National Faceless Appeal Centre (NFAC), Delhi, order dated 15.03.2024 under Section 250 of the Act. Assessment order dated 27.03.2015 Assessment Order under section 147/144 of the Income Tax Act, 1961. 2 ITA No.2353/Del/2024 2007-08 -do- Penalty order dated 17.03.2020 Penalty Order under section 271(1)(c) w.r.s 274 of the Income Tax Act, 1961. 2. To begin with, we shall first take up ITA No.2352/Del/2024 for Assessment Year 2007-08. ITA No.2352/Del/2024 Assessment Year 2007-08 : 3. As per the grounds of appeal, the assessee has inter alia challenged the assumption of jurisdiction under Section 147 of the Act and alleged that the prerequisite of Section 147 and Section 151 of the Act has not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of Section 147(b) of the Act clearly reflects nonapplication of mind of the sanctioning authority as held in several judicial precedents. The approval by the sanctioning authority which reads as "yes, it is a fit case for issue of notice u/s 148" does not reveal as to how he finds that it is a fit case. 4.1 Delineating further, the learned Counsel adverted to the reasons recorded and pointed out that the allegation towards escapement of Rs. 15 lakhs towards purchase consideration of land parcel is stated to be "accounted income/cash". Thus, such expression being the basis of 'reason to belief' does not permit the Assessing Officer to allege escapement. As can be seen, the Assessing Officer himself says that the income/cash is accounted an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nder Section 151 of the Act and reasons recorded by the AO under Section 148(2) of the Act seeking approval of the Addl. CIT is reproduced hereunder for immediate reference:- "NOTICE UNDER SECTION 148 OF THE INCOME TAX ACT, 1961 Office of the Income Tax Officer Ward 5(4), Room No.306 CR. Building, New Delhi F. No.ITO/W-5(4)/2013-14//1074 Dated: 20.03.2014 To The Principal Officer, M/s Monteaux Resorts Pvt. Ltd. 11th Floor, Mohandev Building, 1,. Tolstoy Marg, Connaught Place New Delhi-110001 Whereas I have reason to believe that your income chargeable to tax in respect of which you are assessable for the Assessment Year 2007-08 has escaped assessment within the meaning of section 147 of the Income tax Act. 1961. I ther ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in view of the following reasons: 4 years have elapsed, but not more than 6 years have elapsed from the end of the relevant assessment year. The income chargeable to tax which has escaped assessment amounts to or is likely to amount to one lakh rupees or more for the F.Y. relevant to A.Y. 2007-08 The proposal is forwarded for kind consideration and requisite approval for issue of notice u/s 148(i) as per the procedure laid down under the provisions of section 151, read with subsection (2) of the Income Tax Act. 1961. Sd/- Income Tax Officer Ward 5(4), New Delhi" 9. To assail the propriety of reasons so recorded, the assessee contends that firstly, the transaction of land parcel referred to in the reasons recorded are between Shri K ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tal aspect as well. At this juncture, a reference may be made to the judgment delivered by the Hon'ble Bombay High Court in the case of Kalpana Shantilal Haria vs. ACIT WP(L) No.3063 of 2017 dated 22.12.2017 wherein it was held that approval of action with reference to Section 147(b) of the Act is marred by non-application of mind. The Co-ordinate Bench in the case of Bhaijee Commodities (P.) Ltd. vs. ACIT (2023) 154 Taxmann.com 292 (Del) has observed that approval based on Non-existent provision of Section 147(b) of the Act is not sustainable in law. Besides, no minimal reasons were given regarding his satisfaction for such approval. The approval given is clearly mechanical, perfunctory and routine. Thus, neither the reasons recorded under ..... X X X X Extracts X X X X X X X X Extracts X X X X
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