TaxTMI 
TaxTMI 
2014 (1) TMI 1280
X X X X Extracts X X X X
X X X X Extracts X X X X
....is common order for the sake of convenience and brevity. ITA No. 611/Mum/2004 - Assessee's appeal 2. With ground No. 1, the assessee has questioned the validity of the reopening of the assessment u/s. 147 of the Act. It is the say of the assessee that the reopening of the assessment is without jurisdiction and void ab initio. 3. Facts of the case show that the return of income was filed by the assessee on 27.6.1996 declaring total income at Rs. 21,20,060/-. The assessment was completed u/s. 143(3) of the Act. Thereafter, the assessment was reopened by issue of notice u/s. 148 to examine issues regarding loans, expenses and the bills. The original assessment was completed on 30.3.1998 and the notices for reopening of the assessment ....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... provided u/s. 151 of the Act r.w. proviso therefore the assessment is invalid and should be held as such. 4. Per contra, the Ld. Departmental Representative submitted that the sanction has been granted by the CIT by due application of mind. It is the say of the Ld. DR that the approval granted by the CIT is not mechanical on the contrary the CIT has fully considered the facts of the case and after due consideration of the facts has given a direction for reopening of the case by writing the word "approved". Therefore, it cannot be said that the sanction was granted mechanically or without application of mind. The Ld. DR contended that all citations by the Ld. AR in connection with this issue are infructuous on this account. 5. We have....
X X X X Extracts X X X X
X X X X Extracts X X X X
....that it is a fit case for the issue of such notice. Explanation.-For the removal of doubts, it is hereby declared that the Joint Commissioner, the Commissioner or the Chief Commissioner, as the case may be, being satisfied on the reasons recorded by the Assessing Officer about fitness of a case for the issue of notice under section 148, need not issue such notice himself." 6. A simple reading of the provisions of Sec. 151(1) with the proviso clearly show that no such notice shall be issued unless the Commissioner is satisfied on the reasons recorded by the AO that it is a fit case for the issue of notice which means that the satisfaction of the Commissioner is paramount for which the least that is expected fro....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ans, expenses, gifts. During the year Shri Amar G. Bajaj, Prop. Of Mohan Brothers, 712, Linking Road, Khar (W), Mumbai-52 was the beneficiary of such loans, expenses and gifts. The modus-operandi was to collect cash from the parties to whom loans were given and cash was deposited into account of Shri Nitin J. Rugani and cheques were issued to the beneficiary of the loan transaction. In order to ensure that the money reached by cheques to the beneficiary Shri Nitin J. Rugani kept blank cheques of the third parties. The assessee Shri Amar G. Bajaj had taken benefit of such entries of loans, commission and bill discounting of Rs. 8,00,000/-, 11,21,243/- and 9,64,739/- respectively. The assessment was completed u/s. 143(3) of the I.T. Act on 31....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... the report thereby giving sanction to the AO. Nowhere the Commissioner has recorded a satisfaction note not even in brief. Therefore, it cannot be said that the Commissioner has accorded sanction after applying his mind and after recording his satisfaction. 8. Hon'ble Delhi High Court in the case of United Electrical Co. (P.) Ltd. (supra) has held that "the proviso to sub-section (1) of section151of the Act provides that after the expiry of four years from the end of the relevant assessment year, notice under section 148 shall not be issued unless the Chief Commissioner or the Commissioner, as the case may be, is satisfied, on the reasons recorded by the Assessing Officer concerned, that it is a fit case for the issue of such notice. Th....