9911796707
TMI Blog2024 (10) TMI 538X X X X Extracts X X X X X X X X Extracts X X X X ..... urposes of proceedings u/s 147 - Addl. CIT further granted approval ignoring this vital aspect as well. At this juncture, a reference may be made to the judgment delivered in the case of Kalpana Shantilal Haria [ 2018 (1) TMI 195 - BOMBAY HIGH COURT] wherein it was held that approval of action with reference to Section 147(b) of the Act is marred by non-application of mind. The Co-ordinate Bench in the case of Bhaijee Commodities (P.) Ltd. [ 2023 (8) TMI 1505 - ITAT DELHI] has observed that approval based on Non-existent provision of Section 147(b) of the Act is not sustainable in law. Besides, no minimal reasons were given regarding his satisfaction for such approval. The approval given is clearly mechanical, perfunctory and routine. Thus, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... .03.2020 Penalty Order under section 271(1)(c) w.r.s 274 of the Income Tax Act, 1961. 2. To begin with, we shall first take up ITA No.2352/Del/2024 for Assessment Year 2007-08. ITA No.2352/Del/2024 Assessment Year 2007-08 : 3. As per the grounds of appeal, the assessee has inter alia challenged the assumption of jurisdiction under Section 147 of the Act and alleged that the prerequisite of Section 147 and Section 151 of the Act has not been clearly fulfilled in the present case and consequently, the additions made by the AO is not justified on merits too. 4. When the matter was called for hearing, the learned Counsel for the assessee adverted to the Grounds of Appeal as well as the Additional Grounds of appeal seeking to challenge the juris ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ting further, the learned Counsel adverted to the reasons recorded and pointed out that the allegation towards escapement of Rs. 15 lakhs towards purchase consideration of land parcel is stated to be accounted income/cash . Thus, such expression being the basis of reason to belief does not permit the Assessing Officer to allege escapement. As can be seen, the Assessing Officer himself says that the income/cash is accounted and hence the very foundation to allege escapement is lost. The reasons recorded thus itself do not meet the pre-requisites of Section 147 of the Act. Secondly, the approval by the sanctioning authority based on such reasons that too under non-existent provision i.e. Section 147(b) of the Act is a glaring pointer to mecha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 13-14//1074 Dated: 20.03.2014 To The Principal Officer, M/s Monteaux Resorts Pvt. Ltd. 11th Floor, Mohandev Building, 1,. Tolstoy Marg, Connaught Place New Delhi-110001 Whereas I have reason to believe that your income chargeable to tax in respect of which you are assessable for the Assessment Year 2007-08 has escaped assessment within the meaning of section 147 of the Income tax Act. 1961. I therefore, propose to assess the income for the said assessment year and I hereby require you to deliver to me, within 15 days from the service of this notice, a return in the prescribed form of your income for the Assessment Year 2007-08. This notice is being issued after recording necessary satisfaction and also taking necessary approval from the Add ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of notice u/s 148(i) as per the procedure laid down under the provisions of section 151, read with subsection (2) of the Income Tax Act. 1961. Sd/- Income Tax Officer Ward 5(4), New Delhi 9. To assail the propriety of reasons so recorded, the assessee contends that firstly, the transaction of land parcel referred to in the reasons recorded are between Shri Khayali Ram and one Mr. Rajeev and not the assessee, Secondly, the approval memo refers to Section 147(b) to allege escapement. The approval has been granted based on such info which reflects nonapplication of mind. Thirdly, to the own reckoning to the AO, the difference in value of land parcel paid is accounted . 10. We have perused the reasons recorded under Section 148(2) of the Act a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ) Ltd. vs. ACIT (2023) 154 Taxmann.com 292 (Del) has observed that approval based on Non-existent provision of Section 147(b) of the Act is not sustainable in law. Besides, no minimal reasons were given regarding his satisfaction for such approval. The approval given is clearly mechanical, perfunctory and routine. Thus, neither the reasons recorded under Section 148 of the Act justify the allegation towards escapement of income nor the approval given by the Addl. CIT stands the test of judicial scrutiny. The transaction of land parcel is also found to be between Mr. Khayali Ram and Rajeev and not assessee. Thus, looking from any angle, the jurisdiction assumed under Section 147 of the Act is not sustainable in law. 11. For the reasons narra ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
