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II. Direct Taxes Case Law:
1. Blue Chip Developers (P) Ltd. Vs. ITO, I.T.A. No. 1061/Del/2019, Date of Order: 02.12.2019, ITAT - Delhi
Issue:
Approval given by approving authority for reopening of assessment
u/s 147 of the Income Tax Act, 1961 was without due application of mind
and in mechanical manner - reassessment should be quashed.
Brief Facts:
In the present case the LD. AO has issued notice u/s 148 on the basis
of approval granted by Pr. CIT, wherein Pr. CIT has not recorded any
satisfaction and only mention “Yes” .
Assessee
object the reopening of assessment on the facts that the LD. AO has
erred in assumption of jurisdiction u/s 147 r.w.s 148 of the Act on the
basis of invalid and mechanical approval granted by Pr. CIT.
Held:
Hon’ble ITAT follow the judgement given in the case of Dharmender
Kumar vs. ITO, ITA No. 2728/Del/2018 and held that the approval granted
by the approving authority is a mechanical and without application of
mind, which is not valid for initiating the reassessment proceedings,
because from the aforesaid remarks, it is not coming out as to which
material; information; documents and which other aspects have been gone
through and examined by the approving authority for reaching to the
satisfaction for granting approval.
Hence, the appeal was held in favour of the assessee and against the revenue.
(Please click here for judgment)
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