2024 (3) TMI 1494

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....ding the appeal of the Assessee on technical grounds where the Ld. AO has recorded the reasons after perusing the information received from the Investigation Wing, Kolkata and has not done independent enquiry or applied his mind. 3.2 WHETHER on the facts and circumstances of the case, the Hon'ble ITAT has erred in holding that the Pr. CIT has not applied its mind while granting approval for reopening the case. The Income Tax Act does not specify that discussion between AO and the Ld. Pr. CIT regarding reopening the case needs to be recorded. The file was routed through Addl. CIT also and hence it cannot be assumed that Pr. CIT has not applied his mind. 3.3 WHETHER on the facts and circumstances of the case, the Hon'ble ITAT has erred in....

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....faction as per Section 151 of the Act. Reference can be drawn from the decision of this Court in N. C. Cables Ltd., wherein, the usage of the expression "approved" was considered to be merely ritualistic and formal rather than meaningful. The relevant paragraph of the said decision reads as under:- "11. Section 151 of the Act clearly stipulates that the Commissioner of Income-tax (Appeals), who is the competent authority to authorize the reassessment notice, has to apply his mind and form an opinion. The mere appending of the expression "approved" says nothing. It is not as if the Commissioner of Income-tax (Appeals) has to record elaborate reasons for agreeing with the noting put up. At the same time, satisfaction has to be recorded of ....

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....ourt as it suggests that the decision has been taken in a mechanical manner. Even if the reasoning set out by the Income-tax Officer was to be agreed upon, the least which is expected is that an appropriate endorsement is made in this behalf setting out brief reasons. Reasons are the link between the material placed on record and the conclusion reached by an authority in respect of an issue, since they help in discerning the manner in which conclusion is reached by the concerned authority. Our opinion is fortified by the decision of the apex court in Union of India v. M. L. Capoor, AIR 1974 SC 87, 97 wherein it was observed as under: "27.. .. We find considerable force in the submission made on behalf of the respondents that the 'rubb....

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....e report which reads "whether the Commissioner is satisfied that it is a fit case for the issue of notice under Section 148", he just noted the word "yes" and affixed his signatures thereunder. We are of the opinion that if only he had read the report carefully, he could never have come to the conclusion on the material before him that this is a fit case to issue notice under Section 148. The important safeguards provided in Sections 147 and 151 were lightly treated by the Income Tax Officer as well as by the Commissioner. Both of them appear to have taken the duty imposed on them under those provisions as of little importance. They have substituted the form for the substance." 20. This Court, while following Chhugamal Rajpal in the case ....