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TMI Blog2023 (10) TMI 1201X X X X Extracts X X X X X X X X Extracts X X X X ..... PCIT had not applied its mind while granting approval. To our minds, approval granted by statutory authorities, as required under the provisions of the Act, has to be furnished to an assessee along with the reasons to believe. The statutory scheme encapsulated in the Act provides that reassessment proceedings cannot be triggered till the AO has reasons to believe that income, which is otherwise chargeable to tax, has escaped assessment and, reasons recorded by him are placed before the specified authority for grant of approval to commence the process of reassessment. In this case, the sense we get is that the second condition requiring AO to obtain prior approval of the specified authority was not fulfilled, as otherwise, there was no good ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... would be evident from the title, this form is not only required to set forth reasons for the commencement of reassessment proceedings but must also include the approval obtained by the Assessing Officer (AO) from the concerned Principal Commissioner of Income Tax (PCIT), before he embark on that route. 5. Having perused the document, what is evident is that the reasons are recorded in Annexure-A which are mentioned against S. No. 11 of the said form. Insofar as the approval is concerned, it has a two-stage process. The satisfaction with regard to commencement of reassessment proceedings is required to be recorded by the Additional Commissioner of Income Tax (ACIT) and by PCIT. 5.1. As far as ACIT is concerned, a perusal of the form shows t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... out verifying the facts of the case. 9. On perusal of the impugned order dated 06.12.2018 whereby the objections filed by the petitioner were disposed of, we are unable to find anything contained therein which would answer the poser raised on behalf of the petitioner by Mr Goel, which was that there was no application of mind whatsoever by the PCIT as to whether or not it was a fit case for triggering reassessment proceedings. 10. Mr Goel goes on to state that this very aspect was also emphasized in the writ petition. For this purpose, our attention has been drawn to paragraph 3.6 of the writ petition, which reads as follows: 3.6 Mechanical recording of reasons is glaring from column no 9 of reasons proforma wherein Ld AO has not cared to e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... en with the counter-affidavit, despite the petitioner raising a specific objection that the PCIT had not applied its mind while granting approval for the commencement of reassessment proceedings. 12.1. No such assertion concerning the letter dated 30.03.2018 has been made in the impugned order dated 06.12.2018 whereby objections were disposed of. 13. To our minds, approval granted by statutory authorities, as required under the provisions of the Act, has to be furnished to an assessee along with the reasons to believe. The statutory scheme encapsulated in the Act provides that reassessment proceedings cannot be triggered till the AO has reasons to believe that income, which is otherwise chargeable to tax, has escaped assessment and, reasons ..... X X X X Extracts X X X X X X X X Extracts X X X X
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