2026 (1) TMI 882

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....sessing Officer under Section 147/143(3) of the Income Tax Act, 1961 [hereinafter referred as 'the Act']. The assessee has raised as many as 11 grounds of appeal on jurisdiction as well as on merits. But, only argued the legal issue raised vide ground no. 6 which reads as under:- "6. (i) On the facts and circumstances of the case, Ld. CIT(A) has erred both on facts and in law, despite the fact that the reassessment proceedings initiated by the AO without obtaining valid statutory prior approval of the prescribed authority as per section 151 of the Act is bad in law and liable to be quashed. (ii) That the purported approval u/s. 151 of the Act is illegal, bad in law and also without application of mind. 2. The brief fact....

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....ablishes that these transactions were not genuine transactions but sham transactions wherein the company M/s Sun Itech and Broadcast Pvt Ltd. has brought back its own unaccounted money with the help of entry provider in the loan / advances having modus operandi of circulating unaccounted money by the complex web of circular transactions to make it legitimate. He observed that assessee has failed to establish the identity, genuineness and creditworthiness of the transactions of receiving Rs. 7,00,00,000/- in the fork of loan / advance. Accordingly, he added the addition of Rs. 7,00,00,000/- u/s. 68 of the Act in the hands of the assessee and also added the entry operators charged commission @2% to provide these accommodation entries amountin....

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.... approval for issue of notice u/s. 148 was granted in a mechanical manner by the PCIT-8, New Delhi by only making mentioned the word "Approved" which is bad in law and resultantly the re-assessment proceedings initiated based on such approval is bad in law. Our aforesaid view is fortified by the following decisions:- - Capital Broadways Pvt Ltd. vs ITO 2024 (10) TMI 311 (DHC). Wherein, it has been held that the satisfaction arrived at by the concerned officer should be discernible from the sanction order passed u/s. 151. However, as may be seen, the approval order is bereft of any reason. There is no whisper of any material that may have weighted for the grant of approval. Even the bare minimum requirement of the approving....