TaxTMI 
TaxTMI 
2026 (1) TMI 967
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....e on record. The case of the Assessee was reopened under section 147 of the Act for the assessment year 2020-21 on the basis of shared information related to the Assessee in accordance to the CBDT OM dated 12-1-24 issued vide F.No. 299/44/2022 by Directorate (Investigation)-III /264 as an outcome of a search action under section 132 of the Act which were conducted at various office and residential premises in the case of M/s Omaxe Group on 14-3-2022 by the Investigation Wing of the Income Tax Department. On the basis of findings, after analysis of seized material and contents of statement on oath, it has been found that Assessee had made payment of Rs. 5,50,000/- to Omaxe Group through unaccounted cash for project "Investment Vrindavan" at Vrindavan during the year under consideration. For this purpose, the case of the Assessee was sought to be reopened after vide issuance of notice under section 148 of the Act on 29-3-2024 after obtaining the prior approval of the Learned PCIT-1, Agra in terms of section 151 of the Act. In response to the notice under Section 148 of the Act dated 29-3-2024, the Assessee filed his return of income on 3-7-2024 declaring taxable income of Rs. 3,02,11....
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....the Court is satisfied that the findings by the ITAT cannot be disturbed. 12. The substantial questions of law framed are answered in favour of the assessee and against the Revenue. The appeal is dismissed." 5. The Hon'ble Delhi High Court in the recent decision in the case of SBC Minerals P Ltd vs ACIT reported in 475 ITR 360 (Del) had held as under:- "8. During arguments, learned counsel for the petitioner has restricted the challenge only to the grant of sanction under section 151 of the Act, stating that the same has been granted mechanically and without due application of mind, and therefore, the grant of sanction is liable to be declared as nullity and invalid, and resultantly, the impugned order passed under section 148A(d) and the impugned notice under section 148 issued consequent to the grant of sanction are liable to be quashed. 9. Per contra, learned counsel for the respondent while defending the order granting approval, has submitted that the approval has been granted based upon the material placed before PCCIT. It is further submitted that the order granting approval need not mention the reasons as the same is based on a prima facie findi....
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....to order u/s 148A(d) AND/OR issuance of notice under section 148 of the Income-tax Act, 1961? Remarks: Approved u/s 148A(d) as a fit case. Name: RAJAT BANSAL Designation: PCCIT, DELHI Date: 20/03/2023 15. It is evident that the approval order is bereft of any reasons. It does not even refer to any material that may have weighed in the grant of approval. The mere appending of the word "approved" by the PCCIT while granting approval under section 151 to the re-opening under section 148 is not enough. While the PCCIT is not required to record elaborate reasons, he has to record satisfaction after application of mind. The approval is a safeguard and has to be meaningful and not merely ritualistic or formal. The reasons are the link between material placed on record and the conclusion reached by the authority in respect of an issue, since they help in discerning the manner in which the conclusion is reached by the concerned authority. Our opinion in this regard is fortified by the decision of the Apex Court in Union of India v. Mohan Lal Capoor AIR 1974 SC 87. The grant of approval by PCCIT in the printed format without any line of reason does not fulfil the require....
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....130 (Cal) and Govinda Choudhary 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 discerning the manner in which conclusion is reached by the concerned authority. Our opinion is....
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....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 "This is fit case for issue of notice under section 148 of-has written 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 instant case, merely appending the phrase "Yes" does not appropriately align with the mandate of Section 151 of the Act as it fails to ....
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....ction 148A(b) of the Income Tax Act, 1961 ("the Act"), an order dated 19th April 2023 passed under Section 148A(d) of the Act and a notice dated 19th April 2023 issued under Section 148 of the Act on various grounds. 2. One of the grounds raised across the bar is that the sanction for issuance of the order under Section 148A(d) of the Act has been granted without application of mind by all the five officers involved. For ease of reference, the sanction under Section 151 is scanned and reproduced herein: 3. Mr. Mistri states this ground could not have been taken in the Petition because the sanction was made available only with the surrejoinder filed by L. A. Janbandhu, Deputy Commissioner of Income Tax-5(2)(1), Mumbai and affirmed on 5th March 2024. We totally agree with Mr. Mistri's submission that the approval has been applied for and granted mechanically. In column 7- the quantum of income which has escaped assessment, the amount is Rs. 42858,47,29,611/-. In the impugned order passed under Section 148A(d) of the Act, the amount mentioned as having escaped assessment is totaling to Rs. 12431,99,24,486/-. A summary of amount reflected in the notice dated 30th ....
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....same, these errors would not have crept in. This displays total non-application of mind by all those persons who have endorsed their approval for issuance of notice under Section 148 of the Act. With great regret, we have to mention that these approvals are being granted mechanically and without application of mind and this is not the only matter. Innumerable orders passed under Section 148A(d) of the Act are being set aside in view of the approval being granted without application of mind. Officer should realize that this is also delaying assessment/ reassessment proceedings and is also affecting the revenue of the nation. We find that the approval has been granted in a most casual manner. The power vested in the Authorities under Section 151 to grant or not to grant approval to the AO to reopen the assessment is coupled with a duty. The Authorities were duty bound to apply their mind to the proposal put up for approval in the light of material relied upon by the AO. That power cannot be exercised casually on a routine perfunctory manner. The important safeguards provided in Section 147 and 151 were treated lightly by the officers. While recommending and granting approval it was o....
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....for Order uis 1464(d) required for issuance of police Tiene Seit for current proceedings covered v/a 148(1)(s) - for more than 3 years bul not more Whether the show cause nodce Gh: 1484(S) contains the details of the isermaton, as par mplanetion-1 of Section 148 (h) contains the details of results of anquality conducted 1484 (a). mitenit regty to showr cause notice u/s 1454(b) or the final extended data Yes/ 12-4/7-23 Whether personal hearing requested by - Wieder the provision of Son, 150(1) me 19. Recommendations of the Astrsonali Joint CIT Ramaria: The information in the case of the -------------- companies which has merged in the present company La. esses es. The Indannation suggests that income embedded in the given transaction is more than As.50 Lakh and has escaped is a fit case to issue notice uls. 148 of the L.T.Act. Name: KANUPRIYA DAMOR Designation: RANGE 5(2), MUMBAI Pole: 1994/2021 Remarks: The Information in the case of the Recommendations of the CIT/PCIT (Where CCITIPOCIT is the specified authority) 20. Rs.4,28,58,47.29.611/- in the PANs of the companies which has merged is the present company La. a The Informatio....