Loading judgment…
No AI summary yet for this case.
Income Tax Appellate Tribunal, DELHI BENCH: ‘SMC’ NEW DELHI
Before: SHRI SAKTIJIT DEY
ORDER This is an appeal by the assessee against order dated 21.09.2017 of learned Commissioner of Income Tax (Appeals), Meerut, for the assessment year 2009-10.
In ground no. 2 of amended grounds, the assessee has challenged the validity of reopening of assessment proceeding under section 147 of the Act.
Briefly the facts are, the assessee is a resident individual.
Based on information received that in the year under consideration, the assessee had sold an immovable property; the Assessing Officer reopened the assessment under section 147 of the Act. Ultimately, the Assessing Officer completed the assessment under section 144/147 of the Act by adding an amount of Rs.28,15,630/- as long term capital gain. Though, the assessee challenged the assessment order, both on legal grounds as well as on merits, however, the appeal was dismissed.
Before me, learned counsel appearing for the assessee submitted that reopening of assessment under section 147 is invalid, as, the competent authority has granted approval mechanically without application of mind. Drawing my attention to the approval granted under section 151 of the Act, learned counsel submitted, in Column No. 1 the Assessing Officer has mentioned that section 147(a) is applicable, whereas, no such provision is there in the statute. Further, drawing my attention to the approval granted, he submitted, it does not show proper application of mind by the authority concerned. He submitted, even the reasons recorded reveal non-application of mind by the Assessing Officer. Thus, he submitted, the assessment order should be declared invalid.
Learned Departmental Representative submitted, the Assessing Officer having validly reopened the assessment in 2 | P a g e accordance with the statutory provisions, assessee’s grounds should be dismissed.
I have considered rival submissions and perused the materials on record. From the reasons recorded, a copy of which is at page 7A of the paper-book, it is observed, the Assessing Officer received AIR information that in the year under consideration, the assessee has sold immovable property for a consideration of Rs.93,72,000/-. Based on such information, the Assessing Officer reopened the assessment under section 147 of the Act.
On perusal of approval granted under section 151 of the Act, a copy of which is placed in the paper-book, it appears to be in typed/printed format. It further appears, the Assessing Officer has himself prepared the format with typed satisfaction and the approving authority has simply signed on the dotted line. This, in my view, does not satisfy the requirement of section 151 of the Act. It is fairly well settled, before granting approval for initiation of proceeding under section 147 of the Act, the authority concerned must examine the materials on record and only after being satisfied with the reasons recorded that income has escaped assessment, should grant approval. In the facts of the present 3 | P a g e appeal, prima facie, it appears that the approval has been granted mechanically without proper application of mind. This makes the reopening of assessment vulnerable. Accordingly, I am of the view that the assessment order passed in absence of valid approval is non-est. Accordingly, I quash the assessment order. In view of my decision above, the grounds raised on merits, having become academic, do not require adjudication.
In the result, appeal is allowed, to the extent noted above.
Order pronounced in the open court on 24th February, 2023