TaxTMI 
TaxTMI 
2016 (2) TMI 1094
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....grounds of appeal but did not press grounds no.3 & 9, therefore, both these grounds stand dismissed as not pressed. 3. Grounds No.1, 2, 7, 8 & 10 were not argued by the ld. Counsel during the course of the hearing. 4. The only ground on which the ld. Counsel relied and argued are grounds no.4, 5 & 6 which relate to the applicability of the provisions of section 151 of the Income-tax Act, 1961 (hereinafter 'the Act'). 5. All the parties (assessees) agreed that all these appeals be decided on the basis of facts involved in ITA No.1298/Del/2014 as the facts involved in all these appeals are common. 6. The brief facts of the case are that the action u/s 147 was initiated in all these cases by issuing notice u/s 148(2) dated 28.03.20....
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....nt year 2005-06. The notice has been issued by the Income-tax Officer, Ward 2 (1). The AO sent the proposal for initiating the proceedings for the approval of the Commissioner of Income-tax/Central Board of Direct Taxes, the copy of which is available at page 8 of the paper book. The Addl. Commissioner vide his letter dated 25.03.2011 gave the approval for issue of the notice u/s 148 in all the cases by observing as under :- " ..... Please refer to your letter F.No.Nil Dated Nil on the above subject. In this connection approval for issuing of notice u/s 148 of the Income Tax Act, 1961 is hereby accorded in the following cases for A.Y. 2004-05 and 2005-06. The prescribed proforma duly approved, are enclosed herewit....
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....ommissioner, unless the Joint Commissioner is satisfied on the reasons recorded by such Assessing Officer that it is a fit case for the issue of such notice : Provided that, after the expiry of four years from the end of the relevant assessment year, no such notice shall be issued unless the Principal Chief Commissioner or Chief Commissioner or Principal Commissioner or Commissioner is satisfied, on the reasons recorded by the Assessing Officer aforesaid, that it is a fit case for the issue of such notice. (2) In a case other than a case falling under sub-section (1), no notice shall be issued under section 148 by an Assessing Officer, who is below the rank of Joint Commissioner, after the expiry of four years from the end....
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....the issue of notice u/s 148 need not to issue such notice himself. From the copy of the notice which is available at page 7, it is apparent that the notice in this case has been issued after the expiry of four years on 28.03.2011. The Addl. Commissioner approved the issuing of the notice u/s 148 of the Act vide letter dated 25.03.2011. The said letter was received by the Income-tax Officer on 29.08.2011. The letter has not been received on 25.03.2011. The provisions of section 151(2) is explicitly clear that the notice u/s 148 cannot be issued unless the Joint Commissioner is satisfied on the reasons recorded by such AO that it is a fit case for the issue of the notice. This clearly denotes that the satisfaction must be recorded by the Join....
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....hat he has done, he has approved the proforma sent by the AO. This approval has also been received by the AO on 29.08.2011 i.e. after the issue of the notice u/s 148 dated 28.03.2011. This, in my opinion, does not meet the requirement of the provisions of section 151 (2) and, therefore, I quash the notice issued u/s 148 (2) as this was issued merely in a mechanical manner without applying the mind by the Addl. Commissioner to the reasons recorded by the AO. 8. I have gone through the decision of Hon'ble Supreme Court in the case of Chhugamal Rajpal vs. S.P. Chaliha & Ors. - 79 ITR 603. This decision, in my opinion, supports the case of the assessee. Similar view has been taken by the Hon'ble Delhi High Court in the case of Central India ....