2025 (9) TMI 1802

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.... Delhi u/s 147/143(3) of the Income-tax Act (hereinafter referred to as the "Act"). 2.0 The assessee has assailed the order of Ld. CIT(A) both on legal grounds as well as on the merits of the addition. During the course of present proceedings, the assessee had raised an additional ground of appeal challenging the invocation of action u/s 153C viz-a-viz with that u/s 148. The impugned additional ground of appeal "not pressed" during the course of present hearing and hence is dismissed. As the legal grounds raised by the assessee challenging validity of approval of the PCIT to issue notice u/s 148 goes to the very root of the controversy and form basis for passing of reassessment order, we deem it appropriate to attend the same first. The ....

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....n'ble Mumbai Tribunal, Hon'ble Delhi High Court and the Hon'ble Apex Court wherein it has been held that independent application of mind is a prerequisite while according approval by PCIT u/s 148 and that absence thereof would be fatal to the notice u/s 148 per se. It was accordingly requested that as the notice u/s 148 is based upon a routine mechanical approval given without any application of mind, the same deserves to be quashed and that the corresponding assessment order be declared a nullity. 4.0 Per contra, the Ld. DR relied upon the order of lower authorities. 5.0 We have heard the rival submissions in the light of material available on records. It is an undisputed fact on record that the approval has been accorded by he PCIT ....

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....of appeal No.2 taken before the CIT(A) reads as under:- "2. That under the facts and circumstances, approval u/s 151 of the superior authorities is not accordance with law and otherwise also mechanical and without application of mind, making the re-asstt. Proceedings unsustainable in law." 9. I find the above ground has been extracted by the CIT(A) in the body of the order. She has also mentioned at para 3.2 of the order that the assessee contended that there was no proper compliance of the provisions of section 151 of the IT Act, 1961. However, her finding on this issue is missing in the entire order. A perusal of the approval given u/s 151, copy of which is placed at pages 20 and 21 of the paper book shows that the Pr. C....

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....proval by a higher ranking official, the finding of the Tribunal quashing the reassessment proceedings cannot be disturbed. 12. I find the Hon'ble Supreme Court in the case of Chhugamal Rajpal vs. S.P. Chaliha & Ors (supra) has held that where the commissioner had mechanically recorded permission and the important safeguards provided in the section 147 and 151 were lightly treated by the officer and the commissioner, the notice issued u/s 148 was held as invalid. The various other decisions relied on by the ld. counsel for the assessee in the paper book also support his case. Since, in the instant case, admittedly, the ld. PCIT while granting approval has simply mentioned 'Yes. I am satisfied' therefore, following the decisions....