TaxTMI 
TaxTMI 
TaxTMI 
2022 (6) TMI 954
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.... in the business of ginning and pressing of cotton. The return of income for the year under consideration was filed by it on 23.09.2010 declaring a total income of Rs.5,14,300/-. The said return was selected for scrutiny and in the assessment originally completed under Section 143(3) of the Income-tax Act, 1961 ("the Act" in short) vide order dated 26.03.2013, total income of the assessee was determined by the Assessing Officer at Rs.3,84,53,522/- after making an addition of Rs.3,79,39,222/-. Against the said order passed by the Assessing Officer under Section 143(3) of the Act, an appeal was preferred by the assessee before the learned CIT(A) who allowed the said appeal and deleted the entire addition made by the Assessing Officer. Thereaf....
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....w.s 147 of the Act, an appeal was preferred by the assessee before the learned CIT(A) challenging the validity of the said assessment as well as disputing the addition of Rs.50 lakhs made therein under Section 68 of the Act. During the course of appellate proceedings before the learned CIT(A), a detailed submission was filed by the assessee in writing in support of his case. The learned CIT(A), however, did not find merit in the said submission and rejecting the same vide its appellate order dated 20.02.2019 passed in details, he upheld the validity of the assessment made by the Assessing Officer under Section 143(3) r.w.s. 147 of the Act and also confirmed the addition of Rs.50 lakhs made therein by the Assessing Officer under Section 68 o....
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....mmissioner of Income-tax in mechanical manner and without application of mind. He contended that the assumption of jurisdiction to reopen the assessment thus was held to be invalid and the assessment completed in pursuance of the same was quashed. He submitted that the decision of Hon'ble Madhya Pradesh High Court in the case of S. Goyanka Lime & Chemicals Ltd (supra) was challenged by the Revenue in an SLP before the Hon'ble Supreme Court which was dismissed by the Hon'ble Apex Court vide order dated 08.07.2015 in SLP No.11916 of 2015, [2015] 64 taxmann.com 313 (SC). The learned Counsel for the assessee has also relied upon the decision of Hon'ble Delhi High Court in the case of United Electrical Co. Pvt. Ltd Vs. CIT, reported in 258 ITR 3....
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....unsel for the assessee. It is observed from the copy of the relevant document placed at page no.42 of the paper-book that the approval to reopen the assessment in the present case and issue notice under Section148 of the Act to the assessee was accorded by the learned Principal Commissioner of Income-tax by recording his satisfaction in one word "Yes" and even the learned DR has not disputed this position. He, however, has contended that the approval accorded by the learned Principal Commissioner of Income-tax cannot be read in isolation and the same has to be read with reasons recorded by the Assessing Officer for reopening the assessment which were available before the learned Principal Commissioner of Income-tax and which were duly taken....
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....tisfied" which indicates as if he was to sign only on the dotted line. As submitted by the learned Counsel for the assessee, the SLP filed by the Department against the decision of Hon'ble Madhya Pradesh High Court in the case of S. Goyanka Lime & Chemicals Ltd (supra) has already been dismissed by the Hon'ble Supreme Court. 8. In the case of United Electrical Co. Pvt. Ltd (supra) relied upon by the learned Counsel for the assessee, the Hon'ble Delhi High Court held that the requirement of approval by the higher authority to reopen the assessment and issue notice under Section 148 of the Act by the Assessing Officer is a safeguard to prevent arbitrary exercise of power by an Assessing Officer to fiddle with the completed assessment. It was....