2022 (3) TMI 1230

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....f one appeal will decide the fate of the other appeal also. The Ld. D.R. of the revenue Shri Arup Chatterjee could not controvert this issue and after having perused both the appeals, we find this averment of the Ld. A.R. to be correct. Therefore, we are inclined to decide the appeal No. ITA No. 470/Gau/2019 for AY 2014-15 and the result of the same will be followed in the appeal No. ITA No. 471/Gau/2019 for AY 2015-16. 3. The assessee has raised seven (7) grounds of appeal, the assessee has raised the legal issue which is ground No. 3 which reads as under: "For that the learned CIT(A) ought to have held that in absence of proper sanction under section 151 of the Act having been obtained, the impugned order passed under section ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....o check the arbitrary exercise of power by the AO while exercising his power to re-open an assessment. So according to the Ld. AR the power of giving approval had to be carried out carefully and the grant of sanction should not be ritualistic or mechanical. According to him, brief reason has to be given by the approving authority to show application of mind of the Ld. Addl. CIT which is absent in this case. Therefore, according to the Ld. AR, this action of the Ld. Addl. CIT giving approval for reopening of the assessment without assigning any reason at all is invalid and cannot be termed as a proper approval and is bad in law for non-application of mind and for this legal proposition, he relied on the following case laws: "A. Unit....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... aforesaid case laws, prayed that the AO's action of reopening be held to be bad in law for want of proper approval u/s. 151 of the Act. 5. Per contra, the Ld. The Ld. DR has primarily reiterated the stand taken by the Assessing Officer which we have already noted in our earlier para and the same is not being repeated for the sake of brevity. However, he vehemently opposed the contention of the assessee and submitted that the Addl. CIT has given approval digitally also wherein it has been written "I am satisfied with the reason, so approval given". Therefore, according to the Ld. DR, it is not an approval simplicitor and, therefore, the case laws relied upon by the Ld. AR cannot come to the rescue of the assessee and, therefore, he d....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ed the approval of Addl./Joint CIT u/s. 151 for issuance of notice u/s. 148 of the Act. It is noted that the AO had put up the note for approval for reopening on 28.11.2017 and on the same day approval has been written by hand by the Addl. CIT and on the same date notice has been issued u/s. 148 by the AO. Even though the Ld. DR stated that he has got online approval wherein the Ld. Addl. CIT has written "I am satisfied with the reason so approval granted" still according to me the action of the Addl. CIT cannot satisfy the requirement of law which is expected from an authority while exercising approval before issuance of notice for re-opening. It should be kept in mind that approval u/s. 151 of the Act is a power given to the higher office....