CANDOR INFRATECH P.LTD,NEW DELHI vs. ACIT, CIRCLE-5(2), NEW DELHI

Heard both the parties at length. Case file perused.

Learned counsel representing assessee at the outset invites our attention towards it’s petition dated 04.04.2025 seeking to raise an additional ground challenging validity of the reopening herein for want of a valid approval of the prescribed authority u/s 151 of the Act. Candor Infratech Pvt. Ltd. 2 4. Learned CIT-DR on the other hand vehemently submits in light of A. Govindarajulu Mudaliar Vs. CIT (1958) 34 ITR 807 (SC), CIT Vs. M. Ganapathi Mudaliar (1964) 53 ITR 623 (SC), ACIT (2018) 407 ITR 594 (Del.) that neither the prescribed authorities’ above section 151 approval could be held as bad in the eyes of law nor the assessee is entitled to raise it’s foregoing additional ground at this belated stage once the Assessing Officer had recorded his reopening reasons strictly as per law.

We have given our thoughtful consideration to the assessee’s and Revenue’s respective vehement contentions against and in support of the former additional grounds sought to be raised in the instant appeal.

We are of the considered view that the assessee’s above additional ground indeed carries merit as not only it raises a juri ictional issue going to the root of the matter but also it has filed the learned prescribed authorities’ approval dated 15.03.2016 (page 12 in paper book) so as to satisfy the rigor of NTPC Ltd. Vs. CIT (1998) 229 ITR 383 (SC) and All Cargo 7. Next comes the basic relevant facts qua the instant legal issue of validity of the impugned reopening. The assessee company had filed it’s return 08.10.2010 declaring Nil income. The Assessing Officer thereafter formed his reasons to believe that it’s taxable income is liable to be assessed had escaped assessment. He thus issued his section 148 notice dated 17.03.2016 after obtaining the prescribed authorities approval section 151 of the Act. We reiterate that this approval forms part of the case records before us wherein the learned prescribed authority appears to have acted in a mechanical fashion by observing “yes” only which could no more be held as due application of mind going by CIT vs. S. Goyanka Lime and Chemical Ltd. (2023) 453 ITR 242 (SC). We thus quash the impugned reopening in very terms. The Revenue’s case law (supra) is not found to be relevant to the legal issue herein. Ordered accordingly.

All other pleadings on merits herein stand rendered academic. Candor Infratech Pvt. Ltd. 4 9. This assessee’s appeal is allowed in above terms. Order Pronounced in the Open Court on 16/05/2025. (M. Balaganesh) (Satbeer Singh Godara) Accountant Member Judicial Member