TaxTMI 
TaxTMI 
2018 (8) TMI 135
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....f law, for our consideration: "Whether on the facts and in the circumstance of the case and in law, the Tribunal was correct in quashing the order made under Section 143(3) r.w.s. 147 holding that the same is out of jurisdiction without appreciating the fact that the sanction of the CIT was based on the satisfaction/ report of the Addl. CIT and as such the requirement of section 151(2) of the IT Act which calls for the sanction of the Addl. CIT, is duly fulfilled?" 3. Respondent is engaged in the business of trading in pharmaceutical products. On 25th March, 2011, the Assessing Officer issued a notice under Section 148 of the Act, seeking to reopen the assessment for the Assessment Year 200405. Respondent challenged the issuanc....
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....otice dated 25th March, 2011 had not been granted by the Additional Commissioner of Income Tax, but by the Commissioner of Income Tax and, thus in breach of Section 151 of the Act. 6 Before considering the rival submissions, it is necessary to reproduce the relevant extracts from 'FORM FOR RECORDING REASONS FOR INITIATING PROCEEDINGS U/S. 148 OF THE ACT, AND FOR OBTAINING APPROVAL OF THE COMMISSIONER OF INCOME TAX, CENTRAL V, MUMBAI' tendered across the Bar. The Form itself indicates that the Assessing Office had submitted the proposal to obtain approval of the Commissioner of Income Tax before issuing the notice dated 25th March, 2011. The remark by Additional Commissioner of Income Tax on the form, is as under: " 12. Remark ....
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....er Section 148 of the Act. All the three communications, referred to herein above in paragraphs 6 and in this paragraph, are taken on record and marked A, B & C for identification. 8. Mr. Tejveer Singh, learned Counsel appearing for the Revenue submits that the Additional Commissioner of Income Tax is the jurisdictional Officer to grant sanction under Section 151 (2) of the Act. This, Officer he, submits has recorded his satisfaction with the reasons recorded by the Assessing Officer to issue the reopening notice. Thus, the requirement of Section 151 (2) of the Act is satisfied inasmuch as the Additional Commissioner of Income Tax has found it to be a fit case for issuing of notice. It is further submitted that even though, the approval ....
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....s very clear that the final sanction/ approval was that of the Commissioner of Income Tax as indicated in the Form and also in the two letters dated 24th March, 2011 and 25th March, 2011. 10. This Court in Ghanshyam Khabrani (supra) while dealing with almost similar/ identical situation has observed as under: " The approval which has been granted is not by the Additional Commissioner of Income Tax but by the Commissioner of Income Tax. There is no statutory provision here under which a power to be exercised by an officer an be exercised by a superior officer. When the statute mandates the satisfaction of a particular manner, it has to be done in that manner. In a similar situation, the Delhi High Court in CIT v/s. SPL's Siddhartha....