2026 (4) TMI 550

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....financial transaction carried out with M/s Bansal Traders (Prop. Dharmendra Kumar Bansal-ANFPBB459E) and the assessee has entered into illegal transactions amounting to Rs. 62,67,075/-. Therefore, case was re-opened u/s 147 of the Act after obtaining approval from higher authorities. Notices u/s 142(1) were issued on various dates. Since the assessee has failed to submit any reply, thus, the assessing officer passed the assessment order wherein total income of the assessee was assessed at INR 1,36,32,565/- vide order dated 29.03.2022 passed u/s 147 r.w.s. 144 r.w.s. 144B of the Act. 3. Against the said order, assessee filed an appeal before Ld. CIT(A) who vide order dated 04.02.2025, set aside the issue to the file of Assessing Officer. 4. Aggrieved by the order of Ld. CIT(A), assessee is in appeal before the Tribunal by taking following grounds of appeal:- 1.1. "That on the facts and in the circumstances of the case, the PCIT, New Delhi, has erred in according sanction u/s 151 of the Income tax Act, 1961, by issuing a single consolidated approval covering 111 cases, without any independent or case-specific satisfaction, thereby rendering the approval mechanical, inv....

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....nces, the action of the Assessing officer in making the addition without rejecting the Audited books of accounts in terms of proviso to section 145 or disputing the quantitative stock is mechanical and arbitrary. 3.5 That even otherwise, the income earned from sale of goods purchased from M/s Bansal Traders already forming part of the returned income for the preceding year, the addition in respect of such transaction tantamount to double addition and as such the impugned addition is against the principle of natural justice. 4. That the orders passed by the lower authorities are not sustainable on facts and same are bad in law. 5. That the appellant craves leave to add, amend, alter or forgo any or all of the grounds as may be necessary and in the interest of justice." 5. Heard the contentions of both the parties at length and perused the material available on record. In Ground of appeal Nos.1.1 to 1.2, assessee claimed that case of the assessee is re-opened by issue of notice u/s 148 of the Act after obtaining the approval of Ld. PCIT wherein Ld. PCIT has granted common approval for 111 cases without applying his mind to each individual case. Copy of t....

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....oval given for 111 cases and held the approval as defective and consequent order passed, was quashed. The relevant observations of Co-ordinate Bench in para 22 of the order are as under:- 22. "It is further seen from the copy of order sheet available at pages 405 to 407 of the paper book for AY 2012-13, as reproduced above, in the case of assessee, the approval for AY 2014-15 was granted twice at S.No. 62 & 79 and for AY 2013-14 at S.No. 68 however, no approval was available for AY 2015-16 by Ld. Pr.CIT. This further established the fact that the approval in the case of the assessee was given in a mechanical manner and approval for multiple assesses was given by a single order thus, Ld. Pr. CIT has not applied his mind while granting the approval for re-opening of the assessment. In view of these facts and placing reliance on the judgement of Hon'ble Supreme Court in the case of CIT vs. S. Goyanka Lime & Chemical Ltd. (supra) and further Hon'ble Jurisdictional High Court as referred above in assessee's appeal for AY 2012-13 in ITA No 1434/Del/2024, we have no hesitation in holding that the approval granted by Ld. Pr. CIT is without application of mind and was granted in me....

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....e said return. No. 9 If the answer to item 8 is in the negative, Please state: - a). The income originally assessed b). Whether it is a case of under assessment / assessment at a too low rate which has been made the subject of alexcessive relief of allowing of excessive loss or depreciation. Rs. 92,62,440/- as per 143(3). No. 10 Whether the provisions of Sec. 150 (1) are applicable. If the reply is in the affirmative, the relevant facts may be stated and it may also be brought out that the provisions of Sec. 150(2) would not stand in the way of initiating proceedings u/s 147. No. 11 Reasons for the belief that income has been escaped assessment. As per Annexure-A OBTAINING APPROVAL OF THE CCIT/CIT/ADDL.CIT Particulars N 1 (Rajiv Ratan Singh) Assistant Commissioner of Income-tax Cirele-61(1), New Delhi Yes, I am satisfied that this is 12. Whether the Addl. CIT is satisfied: On the reasons recorded by AO that it is a fit a fit Case for action ufs 147 Case for the issue of notice u/s 148. of the I. T. Act: 28.03.2 (S. S. Negi) Range-61. New Delhi , Addl. Commissioner of Income Tax. Document 2 8 Sub :- Identifieation of potential anses for ....

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....3-14 C-61(1) 27. ALOK DHIR AAFPD5936P 2014-15 C.61 !!! KUNDU CONSTRUCTION CO. 2013-14 C-61(1) SI. No. as per letter /.ddl. CIT/Range-61/Approval 251(2)/6/6148/2020-21/1350 dated 26/27.03.2021(30 cases) SAJEEV KUMAR CHITKARA KUNDU CONSTRUCTION CO. 2 8 MAR 2021 Document 3 SHARMA AKMPS4378M 2013-14 30 30 KHEM CHAND APPPK6579N NAND KUMAR YADAV 2014-15 C-61(1) . C-61(1) ci F. NO. Addl. dete4 27.03.2021/15 cases] 2013-14 . C-61(1) KHEM CHAND APPPK6579N NAND KUMAR YADAV CIT/Range-61/Approval 151/2)/a/a148/2020-21/1352 31 ABHISHEK MOHAN GUPTA MAILPO2259F C-61(1) ANKIT AGARWAL ADWPA6795M 2015-16 C.61/1) ASHOK KUMAR TANDON AACPT46618 2013-14 C-61(1) 3 4 BAJJRANO LAL KARNANI AHEPK4158L 2013-14 C-61(1) 35 5 BALRAJ KUNDU AGKPK0213F 2013-14 C-61(1) 6 BRIJESH SISODIA AYLPS8551K 2013-14 C-61(1) 37 7 DEEPAK MEHTA AAAPM5044J 2013-14 C-61/1) 38 8 DÄ°LIP KUMAR SAXENA AASPS9921J 2015-16 C-61(11 39 RAJIV AGGARWAL AOLPA9303K 2013-14 40 10 RAVI MALIK AGBPS2554Q 2015-16 C-61/11 SANJAY KUMAR AJEPKS578N 2015-16 C-61/11 42 SANJEEV AGGARWAL AACOAOS87E 2015-16 C-61(1) SANTOSH KUM....

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....8E |2014-15 W-61/11 80 SURENDER KUMAR OOBL AAOPOS2020 2013-14 W-61(1) 5. . F.No. ADDL.CIT/R-61/148 PROPOSAL/2020-31/1354 DATED 25.03.2021 (9 CASES) JAOVIR SINGH DHAKA DAJPD4275N 2015-16 W-62/11 RITA SARKAR OFIPSOS72F 2016-16 W-621 ILIYAS KHAN CDDPX0464J 4 PRANAD KUMAR DASAK TIDVP6705 2015-16 W-TU PRAVEEN RAWAT AZKPRSOOIK 2015-16 W-42111 SHREE DIAMONDS ADXF89377K RAM PARSHAD VERMA SAHIL VERIMA ANAPVOZAIN 89 VEENA MAHAJAN DUJUPM6105Q 2015-16 w-62[1] 6. F.No. Addl. CIT/Range-61/148 Proposal/Iligh Junk/2020-31/1565 Dated 28.03.2021 (22 Cases) 90 1 PRIYANKA JAIN 2014-15 W-63(1 91 VANDANA MITTAL AZXPM69138 2015-16 W-63411 J K IMPEX AACFJ985OD 2014-15 |W-63/11 KANTI DEVI AAFPD1212L 2015-14 W-63111 5 SILPY MITTAL APUPMS972J 2015-16 W-63(1) 6 KAPIL RATHI AIXPRONIK 2015-16 W-43/11 KIRAN CHAND, DOTHRA & SONS HUF AADHK9448J 2015-16 W-63(1) 97 8 ADITYA ALUMINIUM AAXPA1936H 2014-15 |W-63/11 96 6 VARUN MITTAL AKPMODSSP 2014-15 W-63/11 10 KRISHNA SALES UDYOO AAMFK0479R 2014-15 W-63(2) 100 11 MOHDI IMRAN AAOP14274L 2014-15 W-63/1) 101 ....