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Facts
The assessee's appeal for AY 2010-11 arose against an order passed under section 143(3) of the Income Tax Act. The primary issue was the validity of the reopening initiated by the Assessing Officer.
Held
The Tribunal held that the approval for reopening by the prescribed authority was mechanical and lacked proper application of mind. Therefore, the reopening itself was vitiated and quashed.
Key Issues
Whether the reopening of assessment is valid when the approval granted by the prescribed authority is mechanical and lacks proper application of mind?
Sections Cited
143(3), 151
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Income Tax Appellate Tribunal, DELHI BENCH ‘SMC’, NEW DELHI
Before: Sh. Satbeer Singh Godara
Asstt. Year : 2010-11 M/s Anchi Business Solutions Pvt. Ltd., Vs Income Tax Officer, C/o 310, D Ostwal & Associates, Ward-2(4), F-14, Competent House, Connaught New Delhi Place, New Delhi-110001 (APPELLANT) (RESPONDENT) PAN No. AAHCA1119L Assessee by: Sh. Deepak Ostwal, Adv. Revenue by : Ms. Indu Bala Saini, Sr. DR Date of Hearing: 23.06.2025 Date of Pronouncement: 23.06.2025 ORDER
This assessee’s appeal for Assessment Year 2010-11, arises against the CIT(A)/NFAC, Delhi’s DIN & order No. ITBA/NFAC/S/250/2024-25/107676009(1) dated 29.01.2025, in proceedings u/s 143(3) of the Income Tax Act, 1961 (in short “the Act”).
Heard both the parties at length. Case file perused.
It emerges during the course of hearing that there arises the first and foremost issue of validity of the reopening itself for want of a valid approval by the learned prescribed authority u/s. 151 of the Act. The tribunal’s attention is invited to the approval dated 22.03.2017 (page 33 in paper book) wherein the learned prescribed authority had accepted the Assessing Anchi Business Solutions Pvt. Ltd. Officer’s reopening proposal as “Yes, I am satisfied………”. This being the clinching factual position emanating from the record, we hereby quote CIT vs. S. Goyanka Lime and Chemical Ltd. (2023) 453 ITR 242 (SC) that such a mechanical approval vitiates the entire reopening; and therefore, we accept the instant legal ground in very terms. This reopening is quashed therefore.
All other pleadings on merits stand rendered academic.