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Facts
The assessee filed an appeal for Assessment Year 2007-08 against a CIT(A) order related to reassessment proceedings initiated under section 147 of the Income-tax Act, 1961. The primary legal ground challenged by the assessee was the validity of the reopening due to a defective approval by the prescribed authority under section 151.
Held
The tribunal noted that the prescribed authority had approved the Assessing Officer's proposal with a mere 'yes', which is not sustainable in law as per the Supreme Court's decision in CIT v. Goyanka Lime & Chemical Ltd. [2015] 64 taxmann.com 313. Based on this, the tribunal quashed the impugned reassessment itself, rejecting the Revenue's arguments.
Key Issues
Whether the reassessment proceedings are valid when the prescribed authority's approval under section 151 of the Income Tax Act is a mere 'yes' and lacks proper application of mind.
Sections Cited
147, 151
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Income Tax Appellate Tribunal, DELHI BENCH ‘SMC’ NEW DELHI
Before: SHRI SATBEER SINGH GODARA
O R D E R PER SATBEER SINGH GODARA, JM:
This assessee’s appeal for assessment year 2007-08 arises against Commissioner of Income tax (Appeals)-29, New Delhi’s order dated 31.05.2023, in case no. CIT(A), Delhi-35/10253/2018-19, D.R. No. 44/12 in proceedings u/s 147 of the Income-tax Act, 1961, hereinafter referred to as the ‘Act’.
Heard both the parties at length. Case file perused.
Learned counsel appearing for the assessee vehemently argues it’s legal ground challenging validity of the impugned reopening for want of approval by the prescribed authority under section 151 of the Act. She refers to para 1 page 3 of the paper book wherein the learned prescribed authority has approved the Assessing Officer’s proposal as ‘yes’ only, which has been held as not sustainable in law as per CIT v. Goyanka Lime & Chemical Ltd. [2015] 64 taxmann.com 313 (SC). That being the clinching case emerging from the appeal file, I hereby quash the impugned reassessment itself. The Revenue’s corresponding supportive arguments stand rejected.
All other pleadings stand rendered academic.
This assessee’s appeal is allowed in above terms.
Order pronounced in open court on 16.12.2024.