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TMI Blog2013 (5) TMI 660X X X X Extracts X X X X X X X X Extracts X X X X ..... tioner is a company registered under the Companies Act, 1956. For the Assessment Year 2005-06, the petitioner had filed its return of income on 30th October 2005 declaring its total income at "NIL". Such return was accompanied by documents, such as Tax Audit report under section 44AB of the Act, etc. Such return was taken by the Assessing Officer in scrutiny. He framed scrutiny assessment under section 143 (3) of the Act on 2nd April 2007. It is this scrutiny assessment which the respondent desires to reopen beyond the period of four years from the end of relevant assessment year. At the request of the petition, respondent supplied the reasons recorded by him for issuing such a notice. Such reasons read as under :- "It is also noticed th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at the instance of audit party, and therefore also, the same was bad in law; [iii] He lastly contended that in terms of proviso to subsection (1) of Section 151 of the Act, the Assessing Officer had not obtained approval from the Chief Commissioner or Commissioner before issuing the notice, and therefore also, notice was invalid. On the other hand, learned counsel Ms. Mauna Bhatt appearing for the Department opposed the petition and raised the following contentions : [i] There was no true and full disclosure on the part of the petitioner with respect to purchase of the Ship/Tug called "M.V Dolphin" particularly in context of the petitioner's claim for full depreciation of Rs. 5,16,69,100/= @ 25% of the total value. [ii] She pointed out ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uance of notice. Section 151 [1] of the Act pertains to sanction for issuance of notice and reads as under :- "151. Sanction for issue of notice - (1) In a case where an assessment under subsection (3) of section 143 or section 147 has been made for the relevant assessment year, no notice shall be issued under section 148 by an Assessing Officer who is below the rank of Assistant Commissioner or Deputy Commissioner, unless the Joint Commissioner is satisfied on the reasons recorded by such Assessing Officer that it is a fit case for the issue of such notice : Provided that after the expiry of four years from the end of the relevant assessment year, no such notice shall be issued unless the Chief Commissioner or Commissioner is satisfied, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ctive of the level of Assessing Officer issuing notice for reopening, a precondition of the Chief Commissioner or the Commissioner being satisfied on the reasons recorded by the Assessing Officer that it is a fit case for issuance of such notice must be satisfied. This additional safeguard not only involves the application of mind on the part of the Chief Commissioner or the Commissioner but his satisfaction, which would be based on the reasons recorded by the Assessing Officer, and such satisfaction should be that it is a fit case for issuance of the notice. Admittedly, in the present case, these requirements have not been fulfilled. What the Revenue however argues is that when the Commissioner had perused the suggestions of the audit par ..... X X X X Extracts X X X X X X X X Extracts X X X X
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