AI OCR 
TaxTMI 
TaxTMI 
TaxTMI 
2016 (1) TMI 1071
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....d to appreciate that when Addl. CIT records his satisfaction then only he forwards the proposal to the CIT just because the CIT has also given his approval it does not become illegal." 3. Facts of the case in brief are that the original assessment in this case was completed u/s 143(3) of the Income Tax Act, 1961 (hereinafter referred to as the Act) on 26.02.2005 at an income of Rs. 25,42,690/-. Later on, the case was reopened after recording the following reasons: "In this return was filed on dated 01.11.2004 at return income of Rs. 25,42,694/-, the same was processed on 26.02.2006. It has come to the notice that certain investigation were carried out by the Directorate of Investigation, New Delhi in respect of the bogus accommodation e....
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....ng aggrieved the assessee carried the matter to the ld. CIT(A) and challenged the reopening by submitting that the notice u/s 148 of the Act was issued beyond four years and the permission before issuing the notice was not obtained from the prescribed/competent authority in terms of Section 151 of the Act. The reliance was placed on the judgment of the Hon'ble Delhi High Court in the case of CIT Vs SPL's Siddhartha Ltd. (2012) 345 ITR 223. 5. The ld. CIT(A) after considering the submissions of the assessee quashed the assessment by observing at page nos. 6 to 8 of the impugned order as under: "I have called for the record and verified. The AO has obtained the approval of CIT. The following are the relevant columns in the report submitted....
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....nly processed u/s 143(1) on 26.02.2005 as seen from the record. Hence, since notice was issued beyond 4 years from the end of asst. year, the AO should have obtained the permission of Joint/Additional Commissioner of Income Tax in terms of Section 151. In this case, the permission was obtained from Commissioner of Income Tax in contravention to the provisions of Section 151 of the Act. The main contention of the AR, in such a case, is that the reassessment should be held invalid. The provisions of Section 151 are as under: "151. Sanction for issue of notice. (1) In a case where an assessment under sub-section (3) of section 143 or section 147 has been made for the relevant assessment year, no notice shall be issued under section 148 b....
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....s in accordance with law as per the power given to them in specified circumstances. If a statutory authority has been vested with jurisdiction, he has to exercise it according to its own discretion, he has to exercise it according to its own discretion. If discretion is exercised under the direction or in compliance with some higher authorities instruction, then it will be a case of failure to exercise discretion altogether. Held, that under section 151 of the Act, it was only the Joint Commissioner or Additional Commissioner, who could grant the approval for issue of notice under section 148. The approval was not granted by the Joint Commissioner. Instead, it was taken from the Commissioner of Income-tax. This was not an irregularity cu....
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.... & Technologies (P) Ltd. Vs ACIT (2012) 54 SOT 126 (Del ITAT) * ITO Vs Tirupati Cylinders Ltd. (Del. ITAT order dated 28.09.2013) * ITO Vs Tirupati Cylinders Ltd. (Del. ITAT order dated 30.09.2014 * Gajinder Singh Chhabra Vs ITO (2014) 50 Taxmann.com 312 (Del. Trib) * Jai Prakash Ahuja Vs ITO (2014) 48 Taxmann.com 86 (Lucknow Trib.) 8. We have considered the submissions of both the parties and carefully gone through the material available on the record. In the present case, admittedly the AO was not sure as to whether scrutiny assessment was passed in this case or not which is clear from his report furnished to the ld. CIT(A) for obtaining his permission/sanction. The ld. CIT(A) on perusing the record found that no order u/s 1....