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TMI Blog2018 (11) TMI 1917X X X X Extracts X X X X X X X X Extracts X X X X ..... cause this is a jurisdictional issue. It does not require any discovery of new facts, because if approval is taken, then it must be on the assessment record. There would be no requirement of fresh investigation of facts. Therefore, we admit this ground of appeal and proceed to adjudicate the grounds on merit. We have perused every approval. We find that the ld.Additional Commissioner has neither written yes nor no against the column, what to talk of his satisfaction for authorizing the AO to reopen the assessment. The Hon ble Gujarat High Court in the case of Adani Port 2013 (5) TMI 660 - GUJARAT HIGH COURT has observed that sub-section (1) of section 151 of the Act is an important procedural safeguard against arbitrary exercise of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or the assessee has filed applications for admission of additional grounds of appeal in each appeal. He contended that assessments have been reopened in all these cases by issuance of notice under section 148 of the Income Tax Act. As per section 151 of the Act, before reopening of the assessment, approval is required from the Additional Commissioner of Income Tax. The ld.AO though applied for such approval, but the ld.Commissioner has not assigned any satisfaction for granting such approval. Thus, by way of additional ground of appeal, it is pleaded that assessments are not sustainable because no proper approval was granted by the Additional Commissioner of the Income-tax. The ld.counsel for the assessees further relied upon the judgment o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... which approval has been sought. These are in single proforma wherein the AO filled the reasons and then transmitted these proforma to the ld.Additional Commissioner of Income-tax, Bharuch for giving approval. We find that ld.Commissioner has not noted a single fact; nor he has stated yes I have satisfied . He simply put signature in the column meant for his comment. According to the ld.counsel for the assessees this type of satisfaction is not a satisfaction construed under the law, and therefore, the assessment orders are not sustainable. He made reference to the following decisions: i) CIT Vs. Goyanka Lime Chemicals Ltd., 64 taxmann.com 313 (SC); ii) Adani Ports And Special Economic Zone Ltd. Vs. DCIT, 35 taxmann.com 338(Guj); ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 party, the same should be seen as substantial compliance of such a requirement. 11. We are afraid, such a contention cannot be accepted. Sub-section (1) of Section 151 of the Act is an important procedural safeguard against arbitrary exercise of power of issuing a notice for reopening of assessment previously framed after scrutiny. Proviso to sub-section (1) of Section 151 is applicable, where such notice is issued after expiry of four years from the end of relevant assessment year. In such a case, the requirement of satisfaction to be recorded is that of the Chief Commission ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f Hon ble Gujarat High Court. It is also admitted fact that notice under section 148 in all these cases have been issued after expiry of four years from the end of relevant assessment year. Thus, approval under section 151 in every case was required from the Additional Commissioner. For the sake of reference, we reproduce column in which approval was sought in the case of Shri Jayasukhbhai Nanubhai Dudhat, which read as under: 10 Whether the ADDL.CIT Bharuch Range Bharuch is satisfied on the reasons recorded by the Assessing Officer that it is a fit case for issue of notice under section 148 of the IT Act, 19761 Sd/- ADDL.COMMISSIONER OF INCOME TAX, BHARUCH ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tter of recording sanction as he merely wrote on the format Yes, I am satisfied which indicates as if he was to sign only on the dotted line. Even otherwise also, the exercise is shown to have been performed in less than 24 hours of time which also goes to indicate that the Commissioner did not apply his mind at all while granting sanction. The satisfaction has to be with objectivity on objective material.' 8. If the case in hand is analysed on the basis of the aforesaid principle, the mechanical way of recording satisfaction by the Joint Commissioner, which accords sanction for issuing notice under section 148, is clearly unsustainable and we find that on such consideration both the appellate authorities have interfered into th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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