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Facts
The appeals arise against the CIT(A)'s orders related to assessment years 2009-10 & 2010-11, involving proceedings under Section 147 r.w.s. 143(3) of the Income-tax Act, 1961. The primary issue raised was the validity of the reopening for want of a valid approval by the prescribed authority under Section 151 of the Act.
Held
The Tribunal noted that the prescribed authority's approval for reopening was mechanical, as indicated by the phrase 'Yes, it is a fit case'. Citing the case of CIT vs. S. Goyanka Lime and Chemical Ltd., the Tribunal held that such mechanical approval vitiates the entire reopening process.
Key Issues
Whether the reopening of assessment was valid in the absence of proper approval from the prescribed authority under Section 151 of the Income-tax Act, 1961.
Sections Cited
147, 143(3), 151
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Income Tax Appellate Tribunal, AGRA BENCH, AGRA
Before: SHRI SATBEER SINGH GODARA & SHRI MANOJ KUMAR AGGARWAL
ORDER
Per Satbeer Singh Godara, Judicial Member:
This assessee’s twin appeals & 683/Agr/2018 for assessment years 2009-10 & 2010-11, arise against the Commissioner of Income Tax (Appeals) [in short the “CIT(A)], Aligarh’s orders in appeal Nos. 237/2017-18/Aligarh/278 and 239/2017-18/Aligarh both dated 01.06.2018, involving proceedings under section 147 r.w.s. 143(3) of the Income-tax Act, 1961 (hereinafter referred to as ‘the Act’), respectively.
Heard both the parties at length. Case files perused.
It emerges during the course of hearing that in the instant appeals 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.
Our attention is invited to page 19 of the assessee’s paper book wherein the learned prescribed authority had accepted the Assessing Officer’s reopening proposal as “Yes, it is a fit case……….”. This being the clinching factual position emanating from the case files, we hereby quote CIT vs. S. Goyanka Lime and Chemical Ltd. (2023) 453 ITR 242 that such a mechanical approval vitiates the entire reopening; and therefore, we accept the instant legal ground in very terms, in both the instant cases.
All other pleadings on merits stand rendered academic.
This assessee’s twin appeals & 683/Agr/2018 are allowed. Order pronounced in the open court on 13THFebruary, 2025.