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Facts
The assessee's appeal for Assessment Year 2010-11 arose against an order of the Addl./JCIT(A)-1, Jaipur, concerning reassessment proceedings under Section 144 of the Income Tax Act, 1961. A key issue was the validity of the reopening, specifically whether there was a valid approval from the prescribed authority under Section 151 of the Act.
Held
The tribunal noted that the approval for reopening was granted by the prescribed authority in a mechanical manner, simply stating "Yes, I am satisfied". Citing the Supreme Court case of CIT vs. S. Goyanka Lime and Chemical Ltd. (2023) 453 ITR 242 (SC), the tribunal held that such a mechanical approval vitiates the entire reopening process.
Key Issues
The primary issue was the validity of the reopening of assessment due to a mechanically granted approval by the prescribed authority.
Sections Cited
144, 151
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Income Tax Appellate Tribunal, DELHI BENCH ‘SMC’, NEW DELHI
Before: Sh. Satbeer Singh Godara
ORDER This assessee’s appeal for Assessment Year 2010-11 arises against the Addl./JCIT(A)-1, Jaipur’s DIN & order No. ITBA/APL/S/250/2024-25/1066140400(1) dated 27.06.2024, in proceedings u/s 144 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. This tribunal’s attention is invited to the approval dated 17.03.2017 (page 1 in paper book) wherein the learned prescribed authority had accepted the Assessing Officer’s reopening proposal as “Yes, I am satisfied.........”.
Pushpa Devi 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, I accept the instant legal ground in very terms. This reopening is quashed therefore.
All other pleadings on merits stand rendered academic.