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Facts
The assessee filed an appeal against the order of the CIT(A)/NFAC for AY 2017-18, arising from proceedings under section 147 read with section 144 of the Income Tax Act, 1961. The primary issue was the validity of the reopening due to a lack of a valid approval from the prescribed authority under section 151 of the Act.
Held
The Tribunal noted that the approval for reopening was mechanical and did not reflect due consideration of the reasons. Citing the Supreme Court's decision in CIT vs. S. Goyanka Lime and Chemical Ltd., the Tribunal held that such mechanical approval vitiates the reopening.
Key Issues
Whether the reopening of assessment was valid when the approval by the prescribed authority was mechanical and lacked proper application of mind.
Sections Cited
147, 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 2017-18 arises against the CIT(A)/NFAC, Delhi’s DIN & order No. ITBA/NFAC/S/250/2025-26/1081279200(1) dated 29.09.2025, in proceedings u/s 147 r.w.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 25.03.2021 (page 107 in paper book) wherein the learned prescribed authority had accepted the Assessing
Rajesh Gupta Officer’s reopening proposal as “Yes, in view of the reasons............”. 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.