2020 (3) TMI 956

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....he reassessment proceeding initiated by the AO is contrary to specific provisions of section 147 to 151 of the Income Tax Act, 1961 and, therefore, the said reassessment proceeding initiated alongwith the assessment order passed by the Assessing Officer on the foundation of such proceeding are liable to be quashed and CIT(A) erred in not holding so." 2. At the time of hearing, Ld. Counsel for the assessee argued only ground no. 2 which is legal in nature. He stated that the AO has initiated the reassessment proceedings, which is contrary to the provisions of section 147 of the I.T. Act, 1961 and also contrary to section 151 of the I.T. Act, 1961. The AO has completed the assessment and initiated the proceedings u/s. 147 of the Act withou....

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....he parties and carefully considered the case laws and the relevant documents available on record especially the assessment order, impugned order, reasons/satisfaction/approval recorded for issue of notice u/s. 148 of the Act placed at page no. 25-27, which is a copy of performa for recording the reasons for initiating proceedings u/s. 148 and especially the page no. 27 of the Paper Book which is a copy of approval granted by the Pr. CIT-7, New Delhi in a mechanical manner for issuing notice u/s. 148 of the Income Tax Act, 1961 by mentioning as under:- "Yes, I am satisfied." 4.1 After perusing the aforesaid remarks of the Ld. Pr. CIT-7, New Delhi, I find that the approval granted by the Pr. CIT-7, New Delhi is a mechanical and without ....

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....o 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 routine manner. We are constrained to observe that in the present case, there has been no application of mind by the Addl. CIT before granting the approval. (Para 19). (B) Hon'ble Supreme Court of India in the case of CIT vs. S. Goyanka Lime & Chemical Ltd. reported in (2015) 64 taxmann.com 313 (SC) arising out of order of Hon'ble High Court of Madhya Pradesh in CIT vs. S. Goyanka Lime & Chemicals Ltd. (2015) 56 taxmann.com 390 (MP). "Section 151, read with section 148 of Income Tax Act, 1961 - Income escaping assessment - Sanction for issue of notice (Recording of satisfaction) - High....