TaxTMI 
TaxTMI 
2021 (3) TMI 670
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.... That The Appellant prepared Appeal and deposited Appeal fee on 18-03-2020 as per challan of Appeal fee attached with Appeal form. That Appeal could not be receipted in the office of ITAT due to COVID-19 LOCKDOWN as all the Govt, offices were closed. That further appeal was sent by speed post on 18-04-2020 as per receipt reed, from Post Office, which is received in your office on 08-05-2020 due to COVID-19 LOCKDOWN. That non-filling of present appeal in stipulated period is neither intentional nordeliberate. Keeping in view of above explained circumstances, it is humbly prayed that delay in filling of Appeal may kindly be condoned. 3. During the course of hearing the Ld. Counsel for the Assessee reiterated the contents of the aforesaid application and submitted that the delay in filing the appeal occurred due to COVID-19 Lockdown which was beyond the control of the assessee, he requested to condone the delay of 35 days. 4. In his rival submissions the Ld. DR although opposed the condonation of delay but could not controvert the aforesaid contention of the Ld. Counsel for the Assessee. 5. After considering the submissions of both t....
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....t being the legal ground of appeal, the same may, lease, be allowed to be taken. Further, it is submitted that all the facts are borne out from the record of the Assessing Officer/CIT(A) and no fresh facts are likely to be investigated and, therefore, the same may, please, be allowed to be taken in view of the judgment of M/s National Thermal Plant Co. Ltd vs CIT as reported in 229 ITR 383 and oblige. The Ld. Counsel for the assessee submitted that the additional grounds are purely legal grounds which go to the root of the matter, therefore the same may be admitted. The aforesaid additional grounds read as under: 1. "That the Ld. Assessing Officer has erred in assuming the jurisdiction u/s 148 as there was no reason to believe that the income of the assessee had escaped assessment and the Assessing Officer has not applied his own mind before issuance of notice u/s 148 and acted only on borrowed satisfaction, which is not permitted in view of the judgment of Hon'ble Bench of the ITAT, Amritsar Bench in the case of Holyfaith International Pvt. Ltd., as reported in 69 ITR (Trib.) 687 and other case laws. " 2. That the Ld.CIT(A) has also erred in confirming the....
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....n of law arising from facts which are on record in the assessment proceedings, there is no reason why such a question should not be allowed to be raised when it is necessary to consider that question in order to correctly assess the tax liability of an assessee." 9. In the present case, the assessee vide additional grounds has challenged the jurisdiction of the A.O. assumed under section 148 of the Income Tax Act, 1961 (hereinafter referred to as 'Act') and that the A.O. acted only on borrowed satisfaction and did not apply his own mind. 10. The facts related to the aforesaid legal issue, in brief are that the A.O. on the basis of the information that the assessee deposited cash amounting to Rs. 125,00,000/- in his saving bank account during the period relevant to the A.Y. under consideration, was of the view that the aforesaid amount escaped assessment within the meaning of Section 147 of the Act as the assessee had not filed his return of income. The A.O. after obtaining the approval of the Principal CIT, Karnal issued notice under section 148 of the Act. Since, the assessee had not filed the return of income, the A.O. made the addition of Rs. 125,00,000/-. 11. Being agg....
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....ssessment, he simply stated that he was satisfied, however no reasons were recorded for his satisfaction. Therefore, on the basis of mechanical approval of the Ld. Pr. CIT, the proceeding initiated by the A.O. under section 148 were not justified. The reliance was placed on the judgment of the Hon'ble Apex Court in the case of CIT Vs. S. Goyanka Lime & Chemical Ltd. [2015] 64 taxmann.com 313(SC), copy of the said order was furnished which is placed on record. 13.1 In his rival submission the Ld. DR reiterated the observations made by the Ld. CIT(A) and strongly supported the impugned order passed by him. 14. We have considered the submissions of both the parties and perused the material available on the record. In the present case the copy of reasons recorded by the A.O. are placed at page no. 1 of the assessee's paper book which read as under: "Reasons for belief under section 147 of the Income Tax Act, 1961 that the income has escaped assessment, recorded for issuing notice under section 148 of the Income Tax Act, 1961: Assessee's name & address: Sh. Tek Chand S/o Sh. Ram Ji Lal Kushal Majra, Guhla District: Kaithal. 136033 PAN: Not allotted. ....
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....rding sanction as he merely wrote on the format "Yes, 1 am satisfied" which indicates as if he was to sign only on the dotted line. Even otherwise also, the exercise is shown to have been performed in less than 24 hours of time which also goes to indicate that the Commissioner did not apply his mind at all while granting sanction. The satisfaction has to be with objectivity on objective material.' 8. If the case in hand is analysed on the basis of the aforesaid principle, the mechanical way of recording satisfaction by the Joint Commissioner, which accords sanction for issuing notice under section 148, is clearly unsustainable and we find that on such consideration both the appellate authorities have interfered into the matter. In doing so, no error has been committed warranting reconsideration. 9. As far as explanation to Section 151, brought into force by Finance Act, 2008 is concerned, the same only pertains to issuance of notice and not with regard to the manner of recording satisfaction. That being so, the said amended provision does not help the revenue. 10. In view of the concurrent findings recorded by the learned appellate authorities and the....