2024 (9) TMI 1134

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....e Tax Act, 1961. The petitioner carries on the business of iron and steel and had filed the returns for the subject assessment year marked as Annexure- 1. A notice was issued under Section 148 on 26.03.2019; as per Annexure-2 pursuant to which, Annexure-3 was also filed on 24.04.2019. The petitioner then, by Annexure-4 sought for the reasons recorded in writing, for the purpose of issuing a notice under Section 148; as has been held by the Hon'ble Supreme Court in GKN Driveshafts (India) Ltd. v. Income Tax Officer and Others; (2003) 259 ITR 19(SC). Eventually, the reasons were supplied by the subsequent notices, as admitted by the petitioner in the writ petition. 2. Sri D. V. Pathy, learned Counsel for the petitioner has specifically spo....

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....ately enclosed by Annexure-A. 6. For both the years, the Commissioner's approval is recorded in the following manner : - "Based on the reasons recorded, I am satisfied that this is a fit case for issuing notice under Section 148." 7. Obviously, the confusion with respect to sanction having been granted by the Commissioner of Income Tax does not survive. However, the learned Counsel for the petitioner urged that the approval is mechanical and does not disclose any reasons. He relies on two judgments of the Delhi High Court and one of the Hon'ble Supreme Court. 8. In Principal Commissioner of Income Tax v. N. C. Cables Ltd; (2017) 391 ITR 11 (Del), therein the reasons recorded for re-opening of assessment under Section 148; ....

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....clusion of the Assessing Officer was only that there is a case for investigation as to the truth of the alleged transactions, which was held to be not a reason to issue notice under Section 148. Further, the Commissioner had noted the word 'Yes' as an approval without anything more. 11. Obviously, that is not the case here. The Assessing Officer had recorded reasons for believing that there was income escaping assessment which reasons, were also appended to the request for approval made to the Commissioner. The Commissioner had obviously read the reasons and made a written order that he was satisfied on the basis of reasons recorded, that this was a fit case for notice issued under Section 148. Section 151 requires the Principal Commissi....