TaxTMI 
TaxTMI 
TaxTMI 
2025 (10) TMI 644
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.... Delhi order dated 30.01.2024 30.03.2022 147 r.w.s. 144B of the Income Tax Act, 1961. 4. ITA No.1432/Del/2024 [Assessment Year 2015-16] CIT(A), NFAC, Delhi order dated 30.01.2024 30.03.2022 147 r.w.s. 144B of the Income Tax Act, 1961. 2. The issues being common, interlinked and related to the same assessee for Assessment Years 2012-13 to 2015-16 therefore, all these appeals by the assessee have been heard together and accordingly, adjudicated by a common order. 3. First we take appeal of the assessee in ITA No.1435/Del/2024 [Assessment Year 2012-13]. ITA No.1435/Del/2024 [Assessment Year 2012-13] 4. Brief facts of the case are that the assessee is an individual, engaged in the profession of advocate, filed her return of income, declaring income of INR 46,39,180/-. Based on the information received from ITO, Investigation Wing, Unit-4, New Delhi, the AO initiated re-assessment proceedings by issue of notice u/s 148 of the Act on 20.03.2019. Thereafter, various notices were issued however, no any notice was complied with therefore, the final show cause notice was issued on 18.11.2019. In response, the assessee in terms of the mail dated 19.11.2019 req....
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.... in bank account u/s 68 is bad in law and against the facts and circumstances of the case and the same is not sustainable on various legal and factual grounds. 5. That having regard to the facts and circumstances of the case, Ld. CIT(A) has erred in law and on facts in sustaining the action of Ld. AO to the tune of Rs. 14,00,000/- on account of notional house property income and that too by recording incorrect facts and findings and without considering the submissions and evidences filed by the assessee and in violation of principles of natural justice. 6. That in any case and in any view of the matter, action of Ld. CIT(A in sustaining the action of Ld. AO to the tune of Rs. 14,00,000/- on account of notional house property income is bad in law and against the facts and circumstances of the case and the same is not sustainable on various legal and factual grounds. 7. That having regard to the facts and circumstances of the case, Ld. CIT(A) has erred in law and on facts in confirming the action of Ld. AO in charging interest u/s 234A, 234B and 234C of Income Tax Act, 1961. 8. That the appellant craves the leave to add, modify, amend or delete any....
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....Procedure for black Assessment- Search was conducted at residential and business premises of Assessee and notice for block assessment u/s. 158-BC was issued- For block period, returns were filed that were processed u/s. 143 (1)- However, notice u/s. 148 was issued by AO, on basis of certain reasons recorded- Assessee objected to same before AO, that was rejected and assessment was completed u/ss. 143(3) and 147-CIT(A) found that reason recorded by Joint Commissioner of Income Tax, for according sanction, was merely recording 'I am Satisfied'-Action for sanction was alleged to be without application of mind and to be done in mechanical manner-Held, while according sanction, Joint Commissioner, Income Tax only recorded "Yes, I am satisfied"-Mechanical way of recording satisfaction by Joint Commissioner, that accorded sanction for issuing notice u/s. 147, was clearly unsustainable-On such consideration, both Appellate authorities interfered into matter- o error was committed warranting reconsideration-As far as explanation to S. 151, brought into force by Finance Act, 2008 was concerned, same only pertained to issuance of notice and not with regard to manner of recording satisfact....
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....the case of CIT vs N.C. Cables Ltd. (supra) has observed as under:- "Reassessment-Issuance of Notice-Sanction for issue of Notice- Assessee had in its return for A Y 2001-02 claimed that sum of Rs. 1 Crore was received towards share application amounts and a further sum of Thirty Five Lakhs was credited to it as an advance towards loan-Original assessment was completed u/s 143(3)- However, pursuant to reassessment notice, which was dropped due to technical reasons, and later notice was issued and assessments were taken up afresh-After considering submissions of assessee and documents produced in reassessment proceedings, AO added back a sum of Rs. 1,35,00,000/- - CIT(A) held against assessee an legality of reassessment notice but allowed assessee's appeal on merits holding that AO did not conduct appropriate enquiry to conclude that share inclusion and advance received were from bogus entities-Tribunal allowed assessee's appeal on merits- Revenue appealed against appellate order on merits- Assessee's cross appeal was on correctness of reopening of assessment- Tribunal upheld, assessee's cross-objections and dismissed Revenue's appeal holding that there ....
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....er section 148 of the Income-tax Act, 1961." (emphasis¹ supplied) 23. The power to sanction reassessment under section 151, is coupled with a duty to exercise such power reasonably, and not arbitrarily. It is trite law that absence of valid reasons constitutes arbitrariness. In the instant case, the entire process of according sanction demonstrates non-application of mind to the ingredients of section 147, rendering the sanction to be h arbitrary, calling for intervention by a writ court. Evidently, the proposal, the recommendation and the approval in the instant case was mechanical, without either application of mind to the law and the facts or even a modi-cum of how the ingredients of the law had been met. In short, the machinery under section 151 completely failed. 24. The imperative requirement of compliance with the ingredients of section 147 and section 148 is underlined in innumerable judgments. However, we note with respect and approval, a judgment of a Division Bench of this court cited on behalf of the petitioner, in the case of Hindustan Lever Ltd. v. R. B. Wadkar (per V. C. Daga and J. P. Devadhar JJ.), and profitably extract the following (page 3....
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....s for him to put his opinion on record in black and white. The reasons recorded should be clear and unambiguous and should not suffer from any vagueness. The reasons recorded must disclose his mind. Reasons are the manifestation of mind of the Assessing Officer. The reasons recorded should be self-explanatory and should not keep the assessee guessing for the reasons. Reasons provide link between conclusion and evidence. The reasons recorded must be based on evidence. The Assessing Officer, in the event of challenge to the reasons must be able to justify the same based on material available on record. He must disclose in the reasons as to which fact or material was not disclosed by the assessee fully and truly necessary for assessment of that assessment year, so as to establish vital link between the reasons and evidence. That vital link is the safeguard against arbitrary reopening of the concluded assessment. The reasons recorded by the Assessing Officer cannot be supplemented by filing affidavit or making oral submission, otherwise, the reasons which were lacking in the material particulars would get supplemented, by the time the matter reaches to the court, on the strength of the....
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.... case for the issue of such notice. (2) In a case other than a case falling under sub-section (1), no notice shall be issued under section 148 by an Assessing Officer, who is below the rank of Joint Commissioner, unless the Joint Commissioner is satisfied, on the reasons recorded by such Assessing Officer, that it is a fit case for the issue of such notice. (3) For the purposes of sub-section (1) and sub-section (2), the Principal Chief Commissioner or the Chief Commissioner or the g Principal Commissioner or the Commissioner or the Joint Commissioner, as the case may be, being satisfied on the reasons recorded by the Assessing Officer about fitness of a case for the issue of notice under section 148, need not issue such notice himself." 12. A plain reading of the aforesaid provision clearly indicates that the prescribed authority must be "satisfied", on the reasons recorded by the Assessing Officer ("AO"), that it is a fit case for the issuance of such notice. Thus, the satisfaction of the prescribed authority is a sine qua non for a valid approval. 13. It is trite law that the grant of approval is neither an empty formality nor a mechanical exe....
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.... authority under section 151 of the Act for reopening of assessment proceedings as per section 148 of the Act. 17. Thus, the incidental question which emanates at this juncture is whether simply penning down 'Yes' would suffice requisite satisfaction as per section 151 of the Act. Reference can be drawn from the decision of this court in Pr. CIT v. N. C. Cables Ltd.¹, 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 (page 17 of 391 ITR): '11. Section 151 of the Act clearly stipulates that the Commissioner of Income-tax (Appeals), who is the competent authority to authorise 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 the given case which can be reflected in the briefest possible manner. In the present case, the exercise appears to have been ritualistic an....
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....n service records of officers considered by the Selection Committee would have been correlated to the conclusions reached. Reasons are the links between the materials on which certain conclusions are based and the actual conclusions. They disclose how the mind is applied to the subject-matter for a decision whether it is purely administrative or quasi-judicial. They should reveal a rational nexus between the facts considered and the conclusions reached. Only in this way can opinions or decisions recorded be shown to be manifestly just and reasonable." (emphasis supplied)' 19. In the case of Chhugamal Rajpal v. S. P. Chaliha³, the hon'ble Supreme Court refused to consider the affixing of signature along with the noting Yes' as valid approval and had held as under (page 608 of 79 ITR): 'Further the report submitted by him under section 151(2) does not mention any reason for coming to the conclusion that it is a fit case for the issue of a notice under section 148. We are also of the opinion that the Commissioner has mechanically accorded permission. He did not himself record that he was satisfied that this was a fit case for the issue of a notic....
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....eal Nos. 1 & 2 raised by the assessee are allowed. 17. Since we have already allowed legal Grounds of appeal Nos.1 & 2, the other grounds raised by the assessee become academic and thus not adjudicated. 18. In the result, appeal of the assessee is allowed. ITA No.1434, 1433 & 1432/Del/2024 [Assessment Year : 2013-14, 2014-15 & 2015-16] 19. IN all these years in the concise grounds of appeal, in Grounds of appeal Nos. 1& 2 assessee has challenged the legality of the reassessment proceedings being initiated without following the due procedure as provided in section 151 of the Act, thus all these are appeals are taken together and decided as under. 20. It is seen that for these years, Ld. Pr.CIT has granted the approval for reopening the assessment which could be seen from the copy of order sheet entry and the approval memo available at Paper Book for AY 2012-13 at page 405 to 407 that common approval is given by Ld. Pr. CIT for as many as 111 cases where name of the assessee is appearing at Sl.No.62 for AY 2014-15, Sl.No.68 for AY 2013-14 and again at Sl.No.79 for AY 2014-15. It is further seen that while granting approval in the order sheet, Ld. Pr. CIT observed th....
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....24. In the combined result, all appeals of assessee in ITA No.1435, 1434, 1433 & 1432/Del/2024 [Assessment Years 2012-13, 2013-14, 2014-15 & 2015-16] respectively, are allowed. Order pronounced in the open Court on 29.08.2025. ============= Document 1 304 FORM FOR RECORDING THE REASONS FOR INITIATING THE PROCEEDING VIS 148 & FOR OBTAINING APPROVAL OF THE CIT/ADDL.CIT .. S.No. APPROVAL OF THE Particulars Name 1 & address of the assessce PAN Smt. Sunita Bhardwaj, 18-A. Boulevard Road, Opposite St. Stephens Hospital, Delhi-110054 2 AHFPB1928E 3 Status Individual 4 Ward/Circle ACIT. Circle-61(1). New Delhi 5 Assessment year in respect of which it is proposed to issue notice u/s 148. 2012-13 6 Quantum of income which has escaped assessment. Rs.2,77,53,000/- 7 Whether the provisions of section 147(b) are applicable or both the sections are applicable. u/s 147 8 Whether the assessment is proposed to be made for the first time. If the reply is in the affirmation, please state: - a). Whether any voluntary return had been filed. b). If so, the date of filling the said return. Yes 9 If the answer to item 8 is in the negative, Please state: - a). ....
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.... Oleole/ A.Y. Name of the Asscesec Ward SI. SI, No. No. as per Lottor 1. Lottor Addl. CIT/Range-61/Approval 153(2}/u/x148/2029-21/1350 datod 26/27.03.2021(30 ℃ 1 HARISH TIW ARVFT8905B 2014-15 C.6:(1) 2 2 S. RAVI 2014-15 C-62 3 3 DANDDDP. PURI. 2019-10 C-61(J RADHIPY STY ABAHSG 2013-14 C-61(1) 5 MOITAN LAL VAT 2013-1. 6 RENU MALIK 2015-16 SANJEEV KUMAR CHITKARA AABPC5109F 0015-16 2.6141 8 DHIRENDRA PRATAP JASTAVA SRIVASTAVA AASPE8972R 2014-15 C-61(1} C DILIP KUMA AASRSOS 20:14-15 . - C-6111 VINOD SHALL AARE 2013-14 9-03 C-6111 IN CHAWL AAME AMP54618G 2015.16 2019-10 0-61(1) J. KUMAR TYAG AAFER70 12N 0013-14 C-61(1) 13 13 JOHAN SHARMA BRIJ MORE AARDS 659 10 2014-15 C-611- JAY DUA 201553532B 2015-16 C-61(1) S. RAVI DEM 8015-16 2015-10 C-61(1) 6 0 16 ARAYAN CUPTA A NARAYAN.CO AGEPG51045 AGFPUOIUNO 2012.14 2013-14 C-61(1) 7 SATYA HAMAN SALES VARDHMAN AGENCY AAAFV5042R 2013-14, 18 18 JEEV SHANKAR SANJEEV SHANI ABGPS6917D 2015-16 C-bli1) 9 19 ANIL DEV SINGH ATPS1015N 2013-14 2013 C-61'1) 0 2 VO BIKES AAFX0552G 2013-14 C-61011 21 TIRUPATI CEMENT PRODUCTS AACFT2702L 013-1....
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.....03.2021 (22 CASES) 59 STEEL BIRD HI-TECH (INDIA) LT AACES2545J 2015-16 W-61(1) 60 2 PAWAN KUMAR SHARMA AAOPS3584B 2013-14 W-61(1) 61 3 TANYA GOGIA AGUPG8607E 2015-16 W-61(1) 62 4 SUNITA BHARE AHFPB 1928D 2014-15 W-61(1) 63 5 WA GYANENDERA KUMAR ISTTRA AKJPM4658D 2014-15 W-61(1) 64 0 GYANENDERA KUMAR ISHRA AKJPM4658D 2014-15 W-61(1) 65 7 MAHESH KUMAR AGARWAL AAGPA0294G 2013-14 W-61(1) 66 8 SÜDHİR KUMAR AGARWAL AAOPA3900H 2013-14 W-61(1) 57 D KUMAR TIBERWALA AACPTO701B 2013-14 W-61(1) 68 LO A BHARDWAJ 2013.14 69 DHARAM PAUL CHAWLA AAFPCOODD -2013. 1. 2013-19 W-61 70 2 RAJEEV AGARWAL GLPA9303 -2013.14 W.61 7 3 POOJA YADAV 32H 2019-1 2013 W-61 4 YADAV AAYPISO LAYPY9532H 2018 15 OJA PARVEEN CHAWLA 2013 WW-61(1 74 16 PRASAD AND AGFPOSIC4. 0013. 14 W-61(1 75 17 COMPANY YASHPAL GUPTA ADVPG9925E 2013.14 W-6111 27.03.2021(16 casca) ABHISHEK MOHAN GUPTA 151(2)/u/#148/2020-21/1352 AAHPO225917 406- AAÑO AACOT466IN BALRAJ KUNDU NDU F.NO. ADDL.CIT/RENTE CIT/RANGE-61/APPROVAL 151(2)/U/8 148/20 DATED 28.03.2021 (13 CASES) 48/2020-21/1360 BAIN STER KAWALJEET SINGH DUGGAL NIMI ....
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....mation received, rate. mitted as reasons vess- Br. CIT-12, New Delhi. worded by the Assering Officer, he cares SL.No. 1 to 111 an listed in the annemuma enclosed -vant defalls/evidences to be fit cases for action u/s appear prima facie 197/148 of re I. T. Act, 1961. 28/03/2021 Certified True Copy Proforma for seeking approval of the Pr. CIT/Add !. CIT for initiating proceeding u/s 123 408 None of the Assessee 408 Smt. Sunita Bhardwaj 18-A, Boulevard Road, : Opposite St. Stephen Hospital- Delhl-110054 -2. PAN AHFPB1928E Status ndividual Circle TO, Ward-61(1), New Delhi 5. Assessment year in respect of which it is proposed to send notice u/s 148 of the I.T.Act 1961 2014-15 6. The quantum of income which has escaped assessment More than Rs. 93,52,825/- 7. Whether the provision of section 147 Explanation to (a)/(b) are applicable or both sections are applicable Explanation (b) 8. Whether the assessment is proposed to be made for the first time. If the reply is in the affirmative, please state (a) Whether any voluntary return had luntary return had already been filed and; (b) If so, the date of filing the said return. Yes, . Yes,....