Income tax reassessment reopening u/s147 challenged for mechanical s.151 sanction approval; reassessment quashed for invalid jurisdiction.

The dominant issue was the validity of reopening under s.147 in light of the mandatory sanction under s.151. The tribunal held that the prescribed authority's approval was mechanical and non-application of mind, and this "clinching fact" remained unrebutted by the revenue; applying the principle affirmed by the SC in S. Goyanka Lime and Chemical Pvt. Ltd., the sanction was treated as invalid, vitiating assumption of jurisdiction for reassessment. Consequently, the reassessment/impugned assessment was quashed.

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Issues: (i) Whether the reopening of assessment under section 147 is valid in view of the prescribed authority's approval under section 151 which appears to be a mere mechanical approval without independent application of mind.

Analysis: The Tribunal examined the prescribed authority's recorded endorsement on the section 151 approval to the Assessing Officer's reopening proposal and found that the endorsement indicated satisfaction recorded mechanically rather than evidencing an independent application of mind. The department did not rebut this clinching factual position. The Tribunal applied the legal principle that a reopening sanctioned by an approval that is mechanical and devoid of independent consideration is invalid, relying on established precedent addressing mechanical approvals and the requirement of independent satisfaction by the prescribed authority.

Conclusion: The reopening under section 147, having been approved by the prescribed authority's mechanical section 151 endorsement, is invalid; the assessment is quashed and the appeal is allowed in favour of the assessee.

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