TaxTMI 
TaxTMI 
TaxTMI 
2025 (10) TMI 1317
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....ions involved in these appeals are squarely covered by the earlier orders of this Court in Pr. Commissioner of Income Tax, Central Circle-02 v. M/s MDLR Hotels Pvt Limited dated 30.07.2024 in ITA No.593/2023 & other connected matters and in Pr Commissioner of Income Tax Central-2 v. M/s King Buildcon Pvt Limited in ITA No.754/2024 decided vide order dated 17.12.2024, which followed the conclusion drawn by this Court in ITA No.593/2023. 5. He submits that the Revenue has proposed similar substantial questions of law in this appeal, as were in ITA No.593/2023 & other connected matters and this appeal has arisen from a common order dated 08.02.2023 passed by the ITAT, which was also impugned in those appeals. The conclusion drawn by this Court in Pr. Commissioner of Income Tax, Central Circle-02 v. M/s MDLR Hotels Pvt Limited (supra) from paragraph no.2 is reproduced as under:- "2. The issue is principally concerned with the validity of the approval accorded in terms of Section 153D of the Income Tax Act,1961 ["Act"]. We note that the Tribunal has on facts ultimately found that the competent authority chose to accord approval to as many as 246 proposed assessments by way o....
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.... the Joint Commissioner. Such provision has been made applicable to orders of assessment or reassessment passed under clause (b) of section 153A in respect of each assessment year falling within six assessment years immediately preceding the assessment year relevant to the previous year in which search is conducted under section 132 or requisition is made under section 132A. The provision has also been made applicable to orders of assessment passed under clause (b) of section 153B in respect of the assessment year relevant to the previous year in which search is conducted under section 132 or requisitioned is made under section 132A. 50.3 Applicability-These amendments will take effect from the 1st day of June, 2007." 16. The Legislative intent is clear from the above, in as much as, prior to the insertion of Sec. 153D of the Act, there was no provision for taking approval in cases of assessment and reassessment in cases where search has been conducted. Thus, the legislature wanted the assessments/reassessments of search and seizure cases should be made with the prior approval of superior authorities which also means that the superior authorities should apply thei....
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....the approval granted by the prescribed authority under Section 151 of the Act for reopening of assessment proceedings as per Section 148 of the Act. 14. It is pertinent to first examine the mandate of Section 151 of the Act, as it stood prior to the substitution by Act No.13 of 2021. For the sake of clarity, the same is reproduced as under:- "151. Sanction for issue of notice.-(1) No notice shall be issued under Section 148 by an Assessing Officer, after the expiry of a period of four years from the end of the relevant assessment year, unless the Principal Chief Commissioner or Chief Commissioner or Principal Commissioner or Commissioner is satisfied, on the reasons recorded by the Assessing Officer, that it is a fit 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 Chi....
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....gments in Chhugamal Rajpal, (1971) 79 ITR 603 (SC), Chanchal Kumar Chatterjee, (1974) 93 ITR 130 (Cal) and Govinda Choudhury and Sons case, (1977) 109 ITR 370 (Orissa) are examined, the absence of reasons by the Assessing Officer does not exist. This is so as along with the proforma, reasons set out by the Assessing Officer were, in fact, given. However, in the instant case, the manner in which the proforma was stamped amounting to approval by the Board leaves much to be desired. It is a case where literally a mere stamp is affixed. It is signed by an Under Secretary underneath a stamped Yes against the column which queried as to whether the approval of the Board had been taken. Rubber stamping of underlying material is hardly a process which can get the imprimatur of this court 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 d....
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....er 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 of Ess Adv. (Mauritius) S. N. C. Et Compagnie v. ACIT [2021 SCC OnLine Del 3613], wherein, while granting the approval, the ACIT has written-"This is fit case for issue of notice under section 148 of the Income- tax Act, 1961. Approved", had held that the said approval would only amount to endorsement of language used in Section 151 of the Act and would not reflect any independent application of mind. Thus, the same was considered to be flawed in law. 21. The salient aspect which emerges out of the foregoing discussion is that the satisfaction arrived at by the prescribed authority under Section 151 of the Act must be clearly discernible from the expression used at the time of affixing its signature while according approval for reassessment under Section 148 of the Act. The said approval cannot be granted in a mechanical manner as it acts as a linkage between the facts considered and conclusion reached. In the insta....