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TMI Blog2023 (7) TMI 980X X X X Extracts X X X X X X X X Extracts X X X X ..... ning of the assessment clearly shows that the AO proceeded to initiate assessment proceedings u/s 147 of the Act and to issue notice u/s 148 of the Act without having any valid satisfaction and assuming valid jurisdiction, only on the basis of borrowed satisfaction based on report of investigation wing only and there was no independent application of mind by the AO to the information and documents received from the Investigation Wing which could form a valid basis and reason to believe that income has escaped assessment. As decided in Meenashi Overseas [ 2017 (5) TMI 1428 - DELHI HIGH COURT] and PCIT Vs. RMG Polyvinyl [ 2017 (7) TMI 371 - DELHI HIGH COURT] where the reasons recorded by the AO failed to demonstrate link between the tang ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cumstances of the case, the order passed by the AO is bad in the eye of law and on facts as the same is made on the basis of reasons recorded without there being any independent application of mind (11) That the reassessment order passed by the A.O. is bad and liable to be quashed as the same has been reopened on the basis of the reasons which are vague and against the facts on record. 5. On the fact and circumstances of the case, Ld. AO has erred in reopening u/s 147 of the income tax Act, 1961 without obtaining valid approval from the prescribed authority as required u/s 151 of the Income Tax Act, 1961. 6. (1) On the facts and circumstances of the case, Id CIT(A) has erred both on facts and in law in confirming an addition of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iable to be quashed as the case has been reopened on the basis of the reasons which are vague and against the facts of the case and the AO initiated proceedings without having valid reason to believe that income has escaped assessment for relevant assessment year. Further placing reliance on various orders and judgments including order of ITAT Delhi Benches in the case of Pioneer Town Planners Pvt. Ltd Vs. DCIT in ITA No. 132/Del/2018 reported in 2018 (8) TMI 515-ITA Delhi submitted that when the text and words used by the AO in the reasons recorded for reopening clearly shows that the AO proceeded to initiate reassessment proceedings and reopening of assessment without having any valid satisfaction and only on the basis of borrowed satisfa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing approval, showing application of mind and thereafter having satisfaction on the reasons recorded by the AO that it was a fit case for issue notice u/s 148 of the Act. Therefore, legal ground No. 5 of the assessee may kindly be dismissed. 8. On careful consideration of the above submission apropos ground No. 5 of assessee I am of the considered view that the ld PCIT has given his approval u/s 151 of the Act in Column 13 of page 15 wherein, he has given a detailed basis based on the exercise undertaken by him, before granting approval u/s 151 of the Act. I am unable to see any discrepancy therein, which could show nonapplication of mind by the PCIT at the time of granting approval u/s 151 of the Act. Therefore, I hold that the legal gr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ind by the AO to the information and documents received from the Investigation Wing which could form a valid basis and reason to believe that income has escaped assessment. 10. Keeping in view, above noted factual position and legal analysis of the reasons recorded by the AO, respectfully following the decision of jurisdictional High Court of Delhi, as has been vehemently relied by the ld counsel of the assessee, in the cases of PCIT Vs. Meenashi Overseas 395 ITR 677 (Delhi), PCIT Vs. RMG Polyvinyl (India) Ltd 396 ITR 5 (Del) wherein, their lordship speaking for the Hon ble Jurisdictional High Court held that where the reasons recorded by the AO failed to demonstrate link between the tangible material and the formation of reasons to beli ..... X X X X Extracts X X X X X X X X Extracts X X X X
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