TaxTMI 
TaxTMI 
2019 (12) TMI 137
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....e which have been used adversely, cannot be sustained in law as well as on merits. 4. That under the facts and circumstances, addition of Rs. 15 lacs under section 68 for the share capital / share premium received from Shalini Holdings Ltd. by holding the same as received from alleged entry operator is illegal and unsustainable in law as well as on merits. 5. That under the facts and circumstances, addition of Rs. 10 lacs under section 68 for the share capital / share premium received from Virgin Capital Services (P) Ltd. by holding the same as received from alleged entry operator is illegal and unsustainable in law as well as on merits. 6. That under the facts and circumstances, addition of Rs. 10 lacs under section 68 for the share capital/ share premium received from Mani Mala Delhi Pro. (P) Ltd. by holding the same as received from alleged entry operator is illegal and unsustainable in law as well as on merits. 7. That under the facts and circumstances, addition of Rs. 63,000/- under section 69 of the rate of 1.8 percent of Rs,. 35 lacs is illegal and unsustainable in law as well as on merits. 2. At the time of hearing, Ld. Counsel for the assessee only argued the grou....
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.... of forming a reasonable belief of escaped income, will not debar the AO from exercising his jurisdiction to assess the assessee on reopening notice.. 4. Acorus Unitech Wireless (P.) Ltd. Vs ACIT Delhi High Court T20141 43 taxmann.com 62 (Delhi)/[2014] 223 Taxman 181 (Delhi)(MAG)/[2014] 362 ITR 417 (Delhi) In terms of section 148, law only requires that information or material on which Assessing Officer records his or her satisfaction has to be communicated to assessee, without mandating disclosure of any specific document. 5. PCIT, Vs Paramount Communication (P.) Ltd. Delhi High Court [2017] 79 taxmann.com 409 (Delhi)/[2017] 392 ITR 444 (Delhi) Information regarding bogus purchase by assessee received by DRI from CCE which was passed on to revenue authorities was 'tangible material outside record' to initiate valid reassessment proceedings. 6. Paramount Communication (P.) Ltd. Vs PCIT Supreme Court 2017-TIQL-253- SC-IT SLP of assessee dismissed. Information regarding bogus purchase by assessee received by DRI from CCE which was passed on to revenue authorities was 'tangible material outside record' to initiate valid reassessment proceedings. 7. Amit Polyprints (P....
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....ded his satisfaction that it was a fit case for issuance of notice for reopening assessment, reassessment notice issued against assessee was justified." 4. I have heard both the parties and perused the relevant records especially the orders of the revenue authorities and the case laws cited by both the parties. After perusing the page no. 103 placed in Paper Book No. 2 which is a copy of RECORDING THE REASONS FOR INITIATING PROCEEDINGS U/S. 147 AND FOR OBTAINING THE APPROVAL OF THE Pr. Commissioner of Income Tax, Delhi-2, New Delhi wherein, the Ld. Pr. Commissioner of Income Tax, Delhi-2, New Delhi while granting approval for issue of notice u/s. 148 of the Act in Column no. 12 has only mentioned that "YES", which establish that the approving authority has given approval to the reopening of assessment in a mechanical manner without due application of mind and therefore, on this account the reassessment is not sustainable in the eyes of law and needs to be quashed. The judicial decisions relied upon by the Ld. Sr. DR, have been duly considered. In my considered view, I do not find any parity in the facts of the decisions relied upon with the peculiar facts of the case in hand. 4.1....
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....e reassessment proceedings, because from the aforesaid remarks, it is not coming out as to which material; information; documents and which other aspects have been gone through and examined by the Addl. CIT, Range-65, New Delhi for reaching to the satisfaction for granting approval. Thereafter, the AO has mechanically issued notice u/s. 148 of the Act. Keeping in view of the facts and circumstances of the present case and the case laws applicable in the case of the assessee, I am of the considered view that the reopening in the case of the assessee for the asstt. Year in dispute is bad in law and deserves to be quashed. My aforesaid view is fortified by the following decisions:- A) United Electrical Company (P) Ltd. Vs. CIT & Ors. 258 ITR 317 (Del.) In this case, approval by the Addl. CIT u/s. 151 was given in the following terms:- "Yes, I am satisfied that it is a fit case for issue of notice u/s. 148 of the Income Tax Act." Analyzing, the above satisfaction/approval, it has been held that the CIT is required to apply his mind to the proposal put up to him for approval in the light to eh material relied upon by the AO. The said power cannot be exercised casually and in a r....