Approval under income-tax law upheld despite routing through subordinate officer where competent authority applied independent mind.

Whether routing an approval file through a subordinate officer invalidates approval under Section 151 of the Income-tax Act was considered; the court applied the principle that remarks by a subordinate officer are facilitative and do not oust the jurisdiction of the competent authority provided the competent authority independently applies its mind. On that basis the Principal Commissioner's independent consideration and recorded decision validated the approval; the challenge to the approval as vitiated by routing through the Joint Commissioner was rejected and the petition dismissed in favour of Revenue.

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Issues: Whether routing the file for approval through the Joint Commissioner of Income Tax (JCIT) invalidates the approval granted by the Pr. Commissioner of Income Tax (PCIT) under Section 151 of the Income-tax Act, 1961.

Analysis: The petition challenges the procedural route of the approval file, contending that where the statute prescribes a particular manner of action, that manner must be followed and the file should have been placed directly before the PCIT without routing through the JCIT. The record shows the Assessing Authority forwarded the proposal and that the file contained remarks by the JCIT. The PCIT-2, Jaipur considered the material on record, applied its own mind and granted approval under the statutory power in Section 151 of the Income-tax Act, 1961. The presence of remarks by a subordinate officer (JCIT) was held to be merely facilitative; such remarks do not oust the jurisdiction of the competent authority so long as the competent authority independently applies its mind and records a decision in accordance with the statutory requirement.

Conclusion: The challenge to the validity of the PCIT's approval on the ground that the file was routed through the JCIT is rejected; the PCIT's approval under Section 151 of the Income-tax Act, 1961 stands valid, and the petition is dismissed (decision in favour of Revenue).

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