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TMI Blog2014 (1) TMI 1312X X X X Extracts X X X X X X X X Extracts X X X X ..... val had not been accorded by the Addl. CIT, but had been sought for from the Commissioner, the action of the Tribunal in quashing the assessment proceedings was upheld by the Hon'ble High Court, holding that this was not an irregularity curable u/s 292B of the Act – thus, the issuance of the notice u/s 148 of the Act in the present case is a nullity, and the same is not curable u/s 292B of the Act – the reassessment and all proceedings are quashed – Decided in favour of Assessee. - ITA No.2986/Del/2009, C.O. No.234/Del/2009 - - - Dated:- 31-7-2013 - Shri G. D. Agrawal And Shri A. D. Jain,JJ. For the Petitioner : Shri V. K. Aggarwal, AR For the Respondent : Shri Bhim Singh, Sr. DR ORDER Per A. D. Jain, Judicial Member T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s well as on facts in not holding that the proceedings under section 147/148 is illegal and hence the assessment order is to be quashed." 3. Taking up the assessee's Cross Objections first, the assessee has contended that the Ld. CIT (A) has erred in holding the initiation of re- assessment proceedings to be valid. 4. The Assessing Officer recorded the following reasons (copy at page 15 of the assessee's paper book, 'APB' for short):- "Directorate of Investigation, Agra, UP had sent a list, contained in Compact Disc. Containing details of transactions and particulars of beneficiaries and operators of accommodation entries pertaining to Delhi Region. A perusal of the list shows that M/s Aryan Management Services )Pvt.) Ltd. whose juris ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... view of which, since 4 years have elapsed, but not more than 6 years, the proposal is forwarded as laid down under the provisions of Section 149 (1)(b) of the IT Act, 1961. (ii) Kind approval and sanction from Hon'ble CIT, Delhi-I, New Delhi is required for issue of notice u/s 148 (1) and is sought as per the provisions of section 151 [read with subsection (1) (2)] of the Income Tax Act, 1961 Submitted. Sd/- (Virendra Singh Dhanda) Income Tax Officer, Ward (2 (1), New Delhi." 5. Before us, on behalf of the assessee, it has been contended that the notice dated 27.03.2008, issued u/s 148 of the IT Act was violative of Section 151 of the Act, since the same was issued without obtaining sanction from the Addl. CIT, which was th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , 329 ITR 110 (Del); iv) 'CIT vs. SFIL Stock Broking Ltd.', 325 ITR 285 (Del); v) 'CIT vs. Kamadhenu Steel Alloys Ltd.', 2012-TIOL-236-HC- Del-IT. 7. It has been submitted that in the case of 'M/s Kamadhenu (supra)', the SLP filed by the Department has been dismissed by the Hon'ble Supreme Court in CC15640/2012 vide order dated 27.09.2012. 8. It has further been contended that the ITO has issued the notice u/s 148 of the Act only on the borrowed satisfaction of the Investigation Wing of the Department, rather than on his own satisfaction. It has been contended that this cannot be done, as held in 'CIT vs. Shree Rajasthan Syntex Ltd.', 313 ITR 231 (Raj), 'ITO vs. Vijender Kumar', 67 DTR (Del) (Trib.) 283. 9. Then, it has been con ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ter the expiry of four years from the end of the relevant assessment year, 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." 14. Therefore, the express requirement of Section 151 (2) is that of grant of sanction for issuance of a notice u/s 148 of the Act, by an Assessing Officer not below the rank of Joint Commissioner, where a period of more than four years has elapsed since the passing of an assessment order u/s 143 (1) of the Act. Now, the expression "Joint Commissioner" has been defined in Section 2(28C) of the Act, as follows:- "2(28C) "Joint Commissioner" means a person appointed to be a Joint Commissioner of Income-tax or an Additio ..... X X X X Extracts X X X X X X X X Extracts X X X X
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