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TMI Blog2010 (8) TMI 1073X X X X Extracts X X X X X X X X Extracts X X X X ..... of the Act without applying the mandatory conditions of Section 147 to 151 of the Act, and reopening of the case u/s 147 of the Act was bad in law and beyond the jurisdiction of the AO. In this case, the original return of income was filed by the assessee on 29.10.2001claiming loss of ₹ 22,575/-. Thereafter, in the light of the information received from the Investigation Wing of the Department, the AO had formed a belief that sum of ₹ 5,50,000/- in the nature of certain accommodation entries received by the assessee had escaped assessment. The AO then initiated re-assessment proceedings u/s 147 of the Act. A notice u/s 148 of the Act was issued on 28.3.2008. The assessee has now taken a ground that the AO had issued notice u/s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Asstt. Year 2001-02. In the assessment order, the AO has stated that the notice u/s 148 of the Act was issued on 28.3.2008 after obtaining approval of the CIT, Delhi-III, New Delhi. A copy of form of recording the reasons for initiating proceedings u/s 148 of the Act, and for obtaining the approval of the CIT/Addl. CIT/Jt. CIT in the case of the assessee has been placed before us by the learned counsel for the assessee. In this case, the CIT, Delhi-III, New Delhi has given the approval by stating in column 10 as I am satisfied . Thus, from the order of the AO as well as from the aforesaid form for obtaining the approval, it is clear that the approval was obtained from the CIT, Delhi-III, New Delhi, and not from Additional Commissioner ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... reasons recorded by the Assessing Officer about fitness of a case for the issue of notice u/s 148, need not issue such notice himself. From perusal of the aforesaid provisions contained in Section 151(2), it is clear that in the cases other than the cases where an assessment u/s 143(3) or 147 of the Act has been made for the relevant assessment year, no notice shall be issued u/s 148 by the AO, who is below the rank of Jt. Commissioner, after the expiry of 4 years from the end of the relevant assessment year, unless the Jt. Commissioner is satisfied, on the reasons recorded by such AO, that it is a fit case for the issue of such notice. In the present case, no regular assessment u/s 143(3) was previously made before initiating proceed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ct was given by the Commissioner of Income-tax, though is a higher authority than the Joint Commissioner of Income tax. However, in view of the provisions of Section 151 of the Income-tax Act, it was necessary to obtain the approval of the designated authority as statutorily provided namely, the Joint Commissioner of Income Tax and even the approval of the higher authority would not serve the purpose. This issue is covered by the judgment of the Supreme Court in Commissioner of Income-tax, Bihar and Orissa vs Maharaja Pratap Singh Bahadur of Gidhaur, 41 ITR 421. 7. In the light of the binding decision of the jurisdictional High Court of Delhi, in the above-referred case, we hold that the approval taken by the AO from CIT has not satis ..... X X X X Extracts X X X X X X X X Extracts X X X X
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