DCIT Circle-23(1), New Delhi V. Ram Kumar Shokeen, New Delhi

ITA 1009/DEL/2020

• Counselvise Citation: [2024] 100 COUNSELVISE.COM (IT) 1629 (ITAT-DELHI)
• Duration Of Justice: 4 year(s) 3 month(s) 4 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 12-06-2024
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: F
• Next Hearing Date: 07-05-2024
• Assessment Year: 2011-2012
• Appeal Filed On: 08-03-2020
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Section: 148; 15; 250; 43; 48

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “F” DELHI BEFORE SHRI PRADIP KUMAR KEDIA, ACCOUNTANT MEMBER & SHRI SUDHIR KUMAR, JUDICIAL MEMBER I.T.A. No.1009/DEL/2020 Assessment Year 2011-12 DCIT Circle-23(1) New Delhi Vs. Ram Kumar Shokeen D-9, Pushpanjali Farms, VPO Bijwasan New Delhi TAN/PAN: ATSPS5897A (Appellant) (Respondent) C.O. No.109/DEL/2022 Assessment Year 2011-12 Ram Kumar Shokeen D-9, Pushpanjali Farms, VPO Bijwasan New Delhi Vs. DCIT Circle-23(1) New Delhi TAN/PAN: ATSPS5897A (Appellant) (Respondent) Assessee by: Shri Ved Jain, Advocate Shri Aman Garg, Chartered Accountant Ms. Bulbul Singhal, Chartered Accountant Department by: Shri Vivek Vardhan, Sr.DR Date of hearing: 08 05 2024 Date of pronouncement: 06 2024 O R D E R PER PRADIP KUMAR KEDIA, A.M.: T he c a pt i o ne d a p p e al h a s be en fi l e d a t th e i n s t a n c e o f t he Re ve n u e a ga in st t h e f i r st a pp e l l a te or d e r p a ss e d by t he Co m m i s s i o n e r o f I nc o m e T a x (A p p ea l s) - V II I, N e w D e lhi [ ‘ C IT (A ) ’ i n s h o r t] , da t e d 0 6. 12 . 20 1 9 un d e r s. 250 o f t h e A ct ar is i n g f ro m re - a ss es s m e n t or d e r d a te d 22. 1 2. 2 0 1 8 pa sse d b y t h e A s se s s i ng O ffi c e r (A O ) un de r S e c t i on 14 3( 3 ) r. w . S e c t i o n 1 47 o f t h e In c o me T a x A ct , I.T.A. Nos.1009/Del/2020 CO No.109/Del/2022 2 19 6 1 (t he A c t ) c o n c e r ni n g A Y 2 0 1 1- 1 2. T h e A ss e s se e h a s a l s o fi l e d c ro ss o bj e ct i o n me mo in t h e r ev e nu e a ppe a l . 2. A s pe r t he C ro ss O bj ec t i on, t he as se sse e h as r aise d g r ou n d s t ou c h i n g t he a ss u mp ti o n o f j ur i sd i c t i on un de r S ec t io n 14 7 o f t h e A ct . T h e c ha l l en g e t hu s str i k e s t o t he r o ot o f t he l i ti g at i o n an d he n c e a c q ui re s p ri m ac y o ve r o t he r i ss u e s. T he c ro s s o b je c t io n i s t hu s t a ke n up fo r a dj u di c a ti on at t he fi rst i ns t a nce . 3. W h e n t he m a t t er w as c a l l e d f or h ea ri n g, t he l d . C ou n s e l f or t he a ss es se e s u b m i t t e d a t t h e ou t se t t h at t h e a ss e s se e fi l ed re t ur n o f i nc o m e fo r A . Y . 2 01 1 -1 2 on 30 . 0 7. 2 01 1 d e cl a r i n g t ota l i n c o me at Rs. 2 0 , 53, 6 0 2/ -. T h e a s s e s s m e nt w a s c o nc l u d e d u n d e r s . 1 43 ( 1) of the A c t . H o w e ve r , ba s e d on c e r t a i n i n f o rm a t i on s t a t e d to b e c o l l e c t e d b y t he A O a l l e gi n g e s c a pe m e n t o f i nc o m e i n t h e h a nd s of t he a s s e s s e e , t h e A O re c o rd e d r e a s o n s u n d e r S e c ti o n 1 4 8( 2) of t he A c t d at e d N i l pr o po s i n g re o p e n i n g of t h e c o n c l ud e d a s s e s s m e nt un de r S e c t i o n 14 7 o f th e A c t b y i s s u i n g n ot i c e u n de r Se c t i on 1 4 8 ( 1) o f th e A c t . Fo r t h e p ur p os e s of re o p e n i n g t he a s s e s s m e nt a nd i s s u a nc e of no t i c e u n de r s . 1 4 8 of t he A c t , a n a p pr o va l w a s s o u g ht b y t he A O f ro m t he c om p e t e nt a ut h o r i t y n a m e l y, P r i nc i p a l C om m i s s io n e r of I n c om e T a x ( P r. C IT ) in t er m s of Se c t i on 1 5 1 of t h e A c t . T h e a pp ro va l a s pe r r e qu i s i t i on m e m o w as a c c o r d e d b y t he P r . C I T , D e l hi on 2 9 . 03 . 2 0 1 8 . B a s e d on s uc h a p p ro va l un d e r Se c t i on 1 51 of t he A c t , a no t i c e d a t e d 2 9 . 03 . 20 1 8 w a s i s s u e d u nd e r Se c t io n 14 8 o f t he A c t a n d s e r ve d u p o n t he a s s e s s e e w i th a vi e w t o a s se s s t he a l l e ge d e s c a pe m e n t of c h a r g e a b l e i nc o m e . 3. 1 T h e ld . C o u ns e l a t t hi s s t a ge c h a l l e n ge d t h e l ega li t y of a s s u m pt i o n of j u ri s d i c t i on un d e r s . 1 4 7 r. w . s 1 48 o f t h e A c t . T h e Ld . C o un s e l s u bm i t t e d t h a t t h e A O d i d no t m e t t he p r e - re q u is i tes o f s . 1 4 7 o f t he A c t a nd t hu s t h e pr o c e e d i n gs i n i t i a t e d u n d e r s . 14 7 i s w i t ho ut j u ri s di c t i on a n d t hu s a nu l l i t y . Th e l d . C ou n s e l i n t he s a m e b re a t h a l s o p oi n t e d o u t t ha t I.T.A. Nos.1009/Del/2020 CO No.109/Del/2022 3 t he r e qu i re m e n t o f s . 15 1 h a s a l s o n ot b e e n s a ti s f ie d a t th e e n d o f t he PC IT w h i le r e c o r di n g c on c u r r e nc e w i t h t he re a s on s fo rw a r d e d t o hi m b y t he A O f o r s a n c t i on t he r e of . T he l d . C o u n s e l e x ho rte d t ha t po w e r s ve s t e d un d e r s . 1 4 7 i s a l s o c on t i n ge nt u p o n t h e pr o pe r s a nc t i o n o f t h e c om p e t e nt a ut h or i t y u n d e r s . 1 5 1 of t h e A c t a n d i n t he a b s e n ce o f p ro p e r s a n c t i on , t he i s s u a nc e o f n ot i c e u n de r s . 14 8 s t a n ds vit i a t e d a n d re n d e r e d no n -e s t i n l a w . 3. 2 T h e ld . C o u ns e l a l l e ge d t h a t w hi l e t he c om p e t e nt a ut h o ri t y n a m e ly PC IT h a s g ra n t e d s a nc t i o n u n de r s . 1 51 o f t h e A c t , s uc h s a n c t io n do e s no t m e e t t he r e q ui r e me n t o f l a w . T he a c t o f s a nc t i on b y t he P C I T i s a m e re t ok e n is m a n d a m e c ha n i c a l a c t i on . T he Ld . C o uns e l a d v e rt e d t o t he re q u is i ti o n f o r a p pr o va l f o rw a r d e d to t h e P C I T t h r ou g h t h e o f f i c e of A d di t i o na l C I T , s e e ki n g h i s a pp r o va l u n de r s . 1 5 1 of t he A c t a n d e s s e n t i a l l y s u bm i t t e d t h a t t he a p p r o va l gr a nt e d i s c l e a r l y p l a gu e d w i t h no n -a p pl i c a t i o n o f m i nd . T h e l d . C ou ns e l p oi n t e d ou t t h a t th e A d d it i o na l C I T c o n c e r n e d pe r R o w N o. 1 1 o f t he re q ui s i ti o n m e m o s t a t e s t ha t ‘I a m s a t is f i e d t h a t i t i s a f i t c a s e f o r is s u e o f n ot i c e u / s . 1 4 8’ . T h e r e a f t e r, a s pe r ro w n o . 1 2, t he u l ti m a t e a ut h o r i t y ve s t e d w i t h p o w e r s u / s . 1 5 1 of t he A c t , i . e . , P r . C IT , g ra n t e d a p p r o va l s t a t i n g ‘ ac t i o n u / s . 1 4 8 a pp r o v e d’ 3. 3 D e li n e a t i n g f ur t he r , t h e l d. c o u ns e l vo c i f e ro u sl y a s s e r te d t h a t t he P r . C I T w h i l e gr a n ti n g a pp ro va l ha s a d o pt e d a c o m pl et e l y no nc h a l a nt a pp r oa c h a s e v i d e n c e d f ro m t h e c a s u a l a s s e r t i on s ‘ a c t io n u / s . 1 4 8 ap p r ov e d ’. T h e l d . c o u ns e l a l l e ge d t h a t t h e P r. C IT , a p pa r e ntl y r u b b e r s t a m pe d t h e a t t e m pt o f t he A O t o r e o p e n a nd d i s t u r b t he c o n c l u d e d a s s e s s m e nt w h il e gr a nt i n g s a n c t i on t o d o s o. W hi l e gr a nt i n g a r i t ua l i s t i c a pp r o va l , t h e Pr . C I T h a s e vi d e nt l y n o t a p p l ie d hi s m i n d t o t h e c r uc i a l a s p e c t s f o rm i n g b a s i s o f a ll e ga t i o n of e s c a p e m e n t of i n c om e t o w a r d s c a s h re c e i ve d i n l a n d d e a l s . S i g n i f i c a nt l y , i n t he r e a s on s re c o r d e d , t h e A O hi m s e l f c o nc e d e d t ha t t h e a s s e s s e e h a d f u rn i s h e d c as h bo ok s ho w i n g e nt r i e s t o w a rd s p u r c ha s e a n d s a l e of l a n d i n ru r a l a r e a s i n c a s h. T hu s , i m pl i e d l y t he c a s h t r a n s a c t i on s i n q ue s t i o n f or m i n g t h e b a s i s f or a l l e ge d I.T.A. Nos.1009/Del/2020 CO No.109/Del/2022 4 e s c a pe m e n t w e r e a l re a d y f o r m i n g pa r t of t h e bo o k s of a c c ou nt . T he P r . C I T w a s t h u s e x p e c t e d t o l o o k a nd o f f e r s om e c omm e n t t o j u s t i f y h i s s a n c t i o n t o re o p e n t h e c a s e i n s u c h c i r c u m s t a n c e s . So m e of t he c o m me n t s s h ow in g a p p l i c a ti o n of m i n d i n t h e c i rc u m s t a nc e s c ou l d b e ( a ) w he t h e r w h e n t h e t r a ns a c ti o n s a re r e c o r de d , a pr e l im i n a r y ca s e of e s c a pe m e n t c a n be m a d e o u t o r n ot ( b ) t h e m a i n t a i na b i l it y of a ll e ga t i o n o n no n- re p o rt i n g of s uc h t r a ns a c t i o n i n I T R e t c . T h e Ld . C ou n s e l c o nt e n d e d t ha t t he r e i s no re q u i r e m e nt i n I T R t o re p or t s u c h t ra n s a c t i on s re c e i ve d b y w a y o f a dva n c e s m a d e o r r e f u nd of a d va n c e s . In t he a bs e n c e of a n y s p e c i f i c c ol u m n a s s i gn e d , t h e a s s e s s e e w a s e s to p pe d f r o m m a ki n g d i s c l os u r e of s u c h t ra n s a c t i on s i n th e IT R a n d t he r e f o r e s u c h a s se r t i o n s gi vi n g r i s e t o be l i e f t ow a r d s e s c a p e m e n t o w i n g t o no n d i s c l o s u re is a l s o w i t h o u t a n y f o u nd a t i o n . 3. 4 T h e l d . c o u ns e l a d v e rt e d t o s a n c t i on s o a c c or ded b y t h e PC I T a n d s u bm i t t e d t h a t a ge ne r i c a n d c o s m e t i c a p pr o va l ‘a c t i o n u/ s . 1 4 8 ap p r ov e d ’ a p p a r e n t l y s m a c k s of a c o l o u r l e s s a n d l i s t l e s s s a nc t i on , d e vo i d of a n i o t a o f re f l e c ti o n t o w a rd s a pp l i c a t i o n of m i nd , i f a n y. T he ld . C o u ns e l p o i n t e d o u t t h a t va r i ou s C o u r t s a nd T r ib u nal s h a ve r e pe a t e d l y e xp r e s s e d t he i r d i s a p pr o va l t o s uc h p e rf u nc t o r y a p pr o va l s i n t he c on t e xt of s . 1 5 1 a nd q ua s h e d t h e re a s s e s s m e n t n o t i c e o n t he gr o u n ds of n o n - a pp l i c a ti o n of m i n d b y t he s a nc t i o n i n g a u t h o r i t y b y h o l di n g s u c h a pp r o va l a s no n -e s t i n t he e ye s o f l a w . 3. 5 T h e l d. c o u ns e l s u b m i tt e d t ha t t h e j u r i s di c t i o na l H i g h C o u r t a s w e l l a s t he H on ’ b l e C o u r t s o f d i f f e re n t j ur i s d ic t i o ns have e c h o e d i n c h o r u s t ha t s i m pl y n ot i n g d o w n t he e x p re s s i o n s s uc h a s ‘ Ye s ’ o r ‘ a c t i on u n d e r s e c t i on 1 4 8 a pp r o v e d” e tc . a ga in s t t h e c ol u m n o f s a n c t i o n w i th o ut a pp l i c a ti o n of m i n d b e i ng d i s c e rn i bl e , c a n no t b e c on s i d e re d t o be a pr o pe r a n d va l i d s a n c t i on b y t he c o m p e t e nt a u t ho ri ty . T he l d. c o un s e l re f e rr e d t o j u d gm e n t s r e nd e r e d i n t he c a s e of P C I T v s . N . C . C a b le s L t d . , 39 1 I T R 1 1 ( D e l h i ) ; P r . C I T v s . P i o ne e r To w n P l an n e r s P v t . Lt d . , I TA N o . 9 1 / 2 0 1 9 ju d g m e n t d at e d 2 0 . 0 2 . 2 01 4 ( D e l h i H i g h C ou r t ); C I T J a ba l pu r I.T.A. Nos.1009/Del/2020 CO No.109/Del/2022 5 v s . M /s . S . G o y an k a L i m e a n d C he m i c a l s Lt d . , I TA N o. 8 2 o f 2 0 1 2 j ud g m e nt d at e d 14 . 0 1. 2 0 14 (M . P . H i g h C o ur t ) (S LP b y t he R e v e n ue di s m i s s e d i n C I T v s . S . G o y an k a L i m e an d C h e m i c a l s Lt d . , (2 0 23 ) 4 5 3 I T R 24 2 (S C ) ; M a n u je n d r a S h a h v s . C I T, W P (C ) 1 2 67 7 /2 0 18 j ud gm e nt da t e d 18 . 0 7 . 2 0 2 3 a nd p l e t h o ra of C o - o r d in a t e B e nc h j ud gm e nt s t o c on t e nd t h a t t he c om p e t e n t a u t h o r i t y w h i l e d i s c ha r gi n g s t a t ut o r y ob l i ga t i o n un de r Se c t i o n 15 1 of t h e A c t i s no t e xp ec t e d t o f u nc t i on m e c ha n i c a l l y a nd a c c o r d s a n c t io n o n d o t t e d li n e s . Th e s a t i s f a c t i on of t he c om p e t e nt a u t ho r i t y m u s t be d r a w n w i t h s o m e d e gr e e of o bj e c t i vi t y o n s o m e o bj e c t i ve ma t e r i a l . T h e l d. c o u n s e l t hu s s u b m it t e d t h a t o n th i s gr o un d a l o ne , t h e i s s u a nc e o f n ot i c e u nd e r S e c t i o n 1 4 8 b a s e d on a c r y pt i c s a n c t i o n i s vi t i a t e d a nd c o ns e qu e nt l y , t h e r e -a s s e ss m e n t o rd e r f r a m e d a s a s e q ue l t h e r e t o, is r e n de r e d ba d i n l a w . 4. T h e l d . D R f o r t he R e ve nu e , o n t he o t h e r ha n d , su pp or t e d t he a c ti o n o f th e R e ve n u e A u t h o r i t i e s a nd c o nt e n de d t h at j ur i s d i c t i o n un d e r Se c t i on 1 4 7 ha s b e e n a s s um e d o n t h e b a s i s o f va l id a n d p ro pe r s a nc t i o n of t he c o m pe t e n t a u t h or i t y u n d e r Se c t io n 1 5 1 o f t he A c t . T h e l d . D R c on t e nd e d t ha t t h e a pp r o va l of PC I T un d e r s . 1 51 a re a d m i n is t ra t i ve i n na t u re a n d t he r e i s n o r e q u i re m e n t i n l a w t h a t c o m pe te n t a u t h or i t y ne e d s t o r e c o r d i t s o w n r e a s o ns f or s a nc t i o n u nd e r Se c t i on 15 1 o f t he A c t . O n c e , t he a pp ro va l i s g ra n t e d, t he s t a tu t o r y p re s u mp ti o n i s t o b e d ra w n t ha t t he c o m pe t e nt a u t ho ri t y h a s a c t e d w i t h d u e a p pl i c a t i o n o f m i nd . T he l d. D R t h u s s ub m i t t e d t h a t t h e s a n c t i on g r a nt e d b y t he P r . C I T c a n n ot be f a u l t e d i n l a w h a vin g re ga r d t o t he p l a i n l a n gua ge o f t h e p ro vi s i o n s o f Se c t i on 1 5 1 of t h e A c t . 5. W e h a ve c a r e f u l l y w e i gh e d t h e r i va l c o nt e n ti o n s a nd p e ru s e d t he m a t e r i a l a va i l a b l e o n re c o r d . 5. 1 W h i l e s e ve ra l f a c e t s c ha l l e n gi n g t h e a s s um p t i on o f j u r is d i c t i on un d e r S e c t i o n 14 7 a re i n v ol ve d, w e c o ns i de r i t e x ped i e n t t o a d dr e s s I.T.A. Nos.1009/Del/2020 CO No.109/Del/2022 6 ou r s e l ve s o n t he l e gi t i m a c y o f a p p r o va l gr a nt e d b y P r. C IT u n d e r Se c t i o n 15 1 of t he A c t a s ve h e m e nt l y q u e s t i o n e d on b e h a l f of t he a s s e s s e e . 5. 2 S i nc e t h e p ri m a r y i s s ue hi n ge s a ro u n d t he va l i dit y o f a p p r o va l t o t he re a s o n s f or r e o p e n i n g c o nc l u de d a s s e s s m e n t , t h e t yp e d c op y o f s u c h A p p r o va l M e m o / r e qu i s i t i o n m e m o u n de r s . 1 5 1 of t he A c t i s r e p r od u c e d he r e un d e r f o r e a s y re f e re n c e ; “ C e r t i f i e d T r u e C o p y o f f o r m f o r r e c o r d i n g t h e r e a so n f o r i n i t i a t i n g p r o c e e d i n g s u n d e r S e c t i o n 1 4 8 a n d o b t a i n i n g t h e a p p r o v a l o f t h e p r . C o m m i s s i o n e r o f I n c o m e T a x ” 1 . N a m e a n d A d d r e s s o f t h e a s s e s s e e R a m K u m a r S h o ke e n D - 9 , P u s h p a n j a l i F a r m s , V P O B i j w a s a n , N e w D e l h i - 1 1 0 0 6 1 2 . P e r m a n e n t A c c o u n t N u m b e r A T S P S 5 8 9 7 A 3 . S t a t u s I n d i v i d u a l 4 . D i s t r i c t / C i r c l e / R a n g e A C I T , C i r c l e - 2 3 , N e w D e l h i 5 . A s s e s s m e n t Y e a r i n r e s p e c t o f w h i c h i t i s p r o p o s e d t o i s s u e n o t i c e u / s . 1 4 8 2 0 1 1 - 1 2 6 . T h e q u a n t u m o f i n c o m e w h i c h h a s e s c a p e d a s s e s s m e n t . 7 . W h e t h e r t h e p r o v i s i o n s o f S e c t i o n 1 4 7 a r e a p p l i c a b l e Y e s 8 . W h e t h e r t h e a s s e s s m e n t i s p r o p o s e d t o b e m a d e f o r t h e f i r s t t i m e . I f t h e r e p l y i s i n t h e a f f i r m a t i v e p l e a s e s t a t e W h e t h e r a n y v o l u n t a r y r e t u r n h a d a l r e a d y b e e n f i l e d ; a n d I f s o , t h e d a t e o f f i l i n g t h e s a i d r e t u r n Y e s Y e s 3 0 . 0 7 . 2 0 1 1 9 . I f t h e a n s w e r t o i t e m 8 i s i n t h e n e g a t i v e p l e a s e s t a t e : - ( i ) T h e i n c o m e o r i g i n a l l y a s s e s s e d ( i i ) W h e t h e r i t i s a c a s e f o r u n d e r a s s e s s m e n t a t t o o l o w a r a t e , a s s e s s m e n t w h i c h h a s b e e n m a d e t h e s u b j e c t o f e x c e s s i v e r e l i e f o r a l l o w i n g o f e x c e s s i v e l o s s o r d e p r e c i a t i o n . N . A . N . A . 1 0 . W h e t h e r t h e p r o v i s i o n s o f S e c t i o n 1 5 0 ( 1 ) a r e a p p l i c a b l e . I f t h e r e p l y i s i n t h e a f f i r m a t i v e t h e r e l e v a n t f a c t s m a y b e n o t e d a g a i n s t i t e m N o . 1 1 a n d i t m a y a l s o b e b r o u g h t o u t t h a t t h e p r o v i s i o n s o f S e c t i o n 1 5 0 ( 2 ) w o u l d n o t s t a n d i n t h e w a y o f i n i t i a t i n g p r o c e e d i n g s u / s . 1 4 7 N . A . 1 1 . R e a s o n s f o r t h e b e l i e f t h a t i n c o m e h a s e s c a p e d a s s e s s m e n t A s p e r A n n e x u r e D a t e d : 1 3 . - 0 3 - 2 0 1 8 1 1 . W h e t h e r t h e A d d l . C o m m i s s i o n e r i s s a t i s f i e d o n t h e r e a s o n s r e c o r d e d b y t h e A s s e s s i n g O f f i c e r t h a t i t i s a f i t c a s e f o r t h e i s s u e o f n o t i c e u / s . 1 4 8 . I a m s a t i s f i e d t h a t t h i s i s t h e f i t c a s e f o r i s s u e o f n o t i c e u / s . 1 4 8 1 2 . W h e t h e r t h e P r . C o m m i s s i o n e r o f I n c o m e T a x i s s a t i s f i e d o n t h e r e a s o n s r e c o r d e d b y t h e A s s e s s i n g O f f i c e r t h a t i s a f i t c a s e f o r i s s u e o f n o t i c e u / s . 1 4 8 A c t i o n u / s . 1 4 8 a p p r o v e d . I.T.A. Nos.1009/Del/2020 CO No.109/Del/2022 7 I t i s h e r e b y c e r t i f y t h a t a p p r o v a l f o r r e - o p e n i n g in t h e s a i d c a s e w a s o b t a i n e d f r o m P C I T - 8 a f t e r d u e d i s c u s s i o n w i t h h i m o n 0 9 / 0 3 / 2 0 1 8 . N o t e : Y o u h a v e b e e n g i v e n a p p r o v a l a n d r e a s o n s f o r r e - o p en i n g m u l t i p l e t i m e s . N o w g i v e n l a s t o p p o r t u n i t y . H e n c e f o r t h , t h e c o m p l i a n c e s s h a l l b e m a d e i n t h i s r e g a r d o t h e r w i s e t h e o f f i c e w i l l b e c o m p e l l e d t o p r o c e e d i n t h i s g i ve n c a s e a s p e r l a w . 5. 3 A ba r e gl a nc e o f t h e a p p ro va l m e m o s ho w s t h a t th e A O h a s pr o c e e d e d t o i ni t i a t e th e a c t io n u n de r Se c t i on 14 7 o f th e A c t on t he b a s i s of s a t i s f a c t i o n o f t he P r . C IT t ow a r d s e s c a pe m e n t a s f or w a r de d t o hi m b y t he A O t h ro u gh t h e of f i c e of t he A d di t i o na l C o m m i s si o ne r of In c om e T a x. In o t h e r w o rd s , th e pr i o r a p p r o va l of t h e P r. CIT un d e r Se c t i on 1 5 1 of t h e A c t i n t h e i ns t a nt c a s e h a s s e t t he pr o c e e d in gs u n d e r Se c t i on 1 4 7 of t h e A c t i nt o m o t i on . A s t h e l a w e n v i s a ge , t he per m i s s i o n o f s u p e r i o r a ut h or i t y a s s t a t u t o r i l y de s i gn a te d i s a s i n e qu a n o n t o p r i o r t o i n it i a t i o n of a c t io n un de r Se c t i on 1 47 / 14 8 o f t h e A c t . T he P r .C I T i n t he i ns t a nt c a s e w a s th e c om p e t e n t a ut h o r i t y s t a t ut o ri l y d e s i g na t e d f o r t hi s p ur po s e . It w a s t h u s o n th e b a s i s o f s a t i s f a c ti o n a nd a p p r o va l o f t he P r. C I T t ha t t he r e -a s s e s s m e n t w a s i ni t i a t e d a n d c o m p l e t e d . T h e l e gi t im a c y o f s a t i s f a c t i o n o f t he P C I T f o r t h e pu rp o s e s o f s a n c t ion u n d e r s . 15 1 h a s ho w e ve r b e e n c a l l e d i nt o qu e s t i o n i n t he i n s t a nt c as e . 6. A s po i n te d o u t o n b e ha l f of t he a s s e s s e e , t he P r. C IT h a s s i m p l y re c o rd e d ‘ ac t i o n u/ s . 1 48 ap pr ov e d ’ t o w a r d s s a nc t i o n of r e a s s e s s m e nt pr o c e e d i n g s . O s te n s i b l y, t he s a n c ti o n g ra n t e d i s m ut e d a n d n on - d e s c r i p t . Se c t i on 1 5 1 o f t he A c t o pe r a t e s a s on e o f t he po t e nt s a f e g u a r ds a ga in s t t he a rb i t ra r y a n d d i s pr o po rt i o na t e e x e r c i s e o f p o w er s u nd e r Se c t i on 1 4 7 b y th e A O . It e n s u re s t h a t p o w e r s un de r s . 1 4 7 a r e n o t e xe r c i s e d b y t he A O u n l e s s t he d e s i g na t e d s u p e r i o r of f i c e r i s s a ti s fi e d t ha t t he c o n di t i o n pr e c e de n t f o r e x e rc i s e o f p o w e rs a s pr o v i de d un d e r e r s t w h i le S e c t i o n 1 47 of t he A c t i s f u l f i l l e d. A s a c o r o l la r y, t o m e e t t hi s a v ow e d o b j e c t i ve e ns hr i ne d i n e n a c tm e n t of s . 1 51 o f t h e A c t , it i s i n c u m b e nt u p on t he s u pe r i or a u t ho r it y t o a p p l y i t s m i n d i n n a t e l y t o t he ba s i s d e r i ve d b y A O f o r a l l e ge d e s c a pe m e n t w hi l e gr a nt i n g s a n c t i o n t o th e pr o p o s a l f o r re o p e n i n g. I.T.A. Nos.1009/Del/2020 CO No.109/Del/2022 8 7. S i g n i f i c a nt l y, e rs t w h i l e s . 15 1 o f t he A c t i s s il e n t o n o pp o rt u n i t y t o t he a s s e s s e e b e f o r e s a nc t i o n. T he a b s e n c e of a ny f or m a l o p p or t un i t y t o a s s e s s e e r a t i on a l l y c a l l s f or g re a t e r de g re e o f c i rc um s pe c t i on a n d re s tr a i nt w hi l e e va l u a t in g t he p ro p o s e d a c t io n of the A O . T he s a n c t i on i n g a ut h or i t y w hi l e e x e r c i s i n g p o w e r un d e r Se c t i o n 1 5 1 o f th e A c t , is t hu s e xp e c t e d t o e x a m i ne t h e r e a s o ns , m a t e r i a l o r gr ou n ds a n d t o j u d ge w h e t he r t h e y a re r e l e va nt t o f or m a t i on o f n e c e s s a r y be l i e f o n t h e p a rt o f t he A O a nd t h e re a f te r t o r e c or d n e c e s s a r y s a ti s f a c ti on w hi c h s h o u l d n ot be m e c h a ni c a l b ut a s a r e s u l t o f a pp l i c a t i o n f o r t he i s s u a nc e o f n ot i c e un d e r Se c t i on 1 48 of t he A c t b y t h e A O a s he l d i n C h h u g a m a l R a j pa l V s . S. P . C h a l i h a ( 1 97 1 ) 7 9 I TR 6 03 (S C ). 8. T h e r e q ui r e m e n t of s a nc t i o n u n d e r Se c t i on 15 1 i s s a l u t a r y a s i t e ns ur e s t h a t re o pe n i n g no t i c e s a r e n o t l i gh t l y i s s ue d a n d t o s hu n a n y m i s c on c e pt i o n o r m i s u n de r s t a nd i n g on t he p a rt o f t he A O r e s u l t i n g in ha r a s s m e n t t o a t a x p a ye r . T h us , s u c h s a n c t i on m us t r e f le c t a p pl i c a t i on o f m i nd i n e a r n e s t t o t h e r e a s on s s o r e c or d e d a n d c o n se qu e nt d e c i s i o n m a ki n g t h e re o n . I n t h e p e c ul i a r f a c t s of t he i ns ta nt c a s e , f e w i n s e pa r a bl e po i n t s do oc c u r f r o m t he r e a s o n s r e c or de d f o r c o n s ide r a t i on of t he s a n c t i o n in g a u t ho ri t y . In t h e in s t a n t c a s e , t h e a s se s s e e h a s a dm i t t e d l y pr o du c e d t he c a s h b o ok b e f o r e t h e A O p r i o r to i ni t ia t i on of a c t i o n un d e r Se c t i on 1 4 7 of th e A c t i n w hi c h , t h e c a s h t r a ns a c tio ns a l l e ge d t o be e s c a pe d in c o m e , w e r e du l y f ou nd re c o rd e d i n t h e b o ok s . T he P r . C I T w a s t hu s e x p e c t e d t o de a l on t hi s c r uc i a l a s p e c t w h i l e e n d or s i n g a l l e ga t i o n o f e s c a pe m e n t . S e c on dl y , t he A O c l a i m s t ha t a s s e s s e e ha s n o t d i s c l os e d t he t ra n s a c t i on s i n t h e re t u rn o f i n c o m e . T h e P r. C I T s hou l d h a v e e xa m i n e d t he p l a us ib i l i t y o f s uc h a l l e ga t i o n h a vi n g re ga rd the S t a t u t or y Fo rm (I T R ) de s i g ne d f o r f i l i n g R O I . T he om n i b u s a p p r o va l w i t ho u t a n y c om m e n t gr a nt e d be t r a ys th e a pp l i c a t i on of m i nd on s u c h f o un da t i o na l po i n t s . T he a pp r o va l g r a nt e d d o no t ut t e r a w o r d t ow a rd s a ny r e a s on s w h i c h i n d uc e d h i m t o do s o . U n d e r t he c ir c u m s t a nc e s, w e a re c om p e l l e d t o t hi n k t h a t t he a p p r o va l u nd e r s . 15 1 s u f f e r s f r om t he vi c e of n o n a pp l i c a ti o n of m i n d . T he H on ’ bl e D e lh i H i gh C o u rt in t h e c a s e o f N . C . I.T.A. Nos.1009/Del/2020 CO No.109/Del/2022 9 C a b l e s (s up r a ); P i o ne e r T ow n P l an ne r s (s up r a ); M a n uj e n d r a Sh a h (s u p r a ) h a ve s t r uc k a ba l a n c e a n d de c l i n e d t o e n d o r s e t he r ub be r s t a m p e d a pp r o va l gr a nt e d b y t he P r. C I T u n de r Se c t i on 1 51 o f t h e A c t . 9. I n t h e l i g ht of de l i n e a t i o n m a de , w e s e e pa l p a ble m e ri t i n t h e pl e a of t he a s s e s s e e t h a t t he s a n c t i on g r a n t e d u nd e r Se ct i o n 15 1 o f t h e A c t i s e xt r a ne o u s a nd a n e m pt y f o r m a l i t y a n d do n o t a c c o rd w i t h i t s p u r p o s e . T he va l i d i t y of t h e r e a s s e s s me n t o r d e r i s c on t i n ge nt u p o n a va l i d a pp r o va l u n de r s . 1 5 1 . W he r e th e r e q u i re m e n t t o gr ant a p p r o va l u n d e r Se c t i on 1 51 o f th e A c t i s no t f ul f i l le d , t h e no t i c e i s s u e d u n de r Se c t i on 14 8 a s a s e qu e l t o s u c h s a nc t i o n a n d re s ul t a nt re a ss e s s m e nt f l o w i n g t he r e f r om w ou l d a l s o b e vi t i a t e d in l a w . 10 . W e a r e th u s d is p o s e d to h ol d t ha t t h e r e -a s s e s sm e n t p r oc e e d i n gs un d e r S e c t io n 1 47 a s a c o ns e q u e nc e o f s u c h i n va l i d a p p r o va l i s w i th o ut s a n c t i o n o f l a w a nd c o n s e qu e nt l y t h e r e - a s s e s s m e nt or d e r i n q ue s t io n i s ba d i n l a w . H e n c e , th e j ur i s d ic t i o n u s u r p e d b y t h e A O ba s e d on s u c h a pp r o va l i s r e qu i re d t o b e c a n c e ll e d a nd s e t a s i de . T h i s be i n g s o , t he ot h e r a s pe c t s o f j u r i s d i c t io n a n d ot h e r g ro un d s of C ro s s O b j e c t i on a re re n d e r e d i nf r u c t uo u s a n d h e n c e no t a d j u d ic a t e d . T h e R e ve nu e a p pe a l a ri s i n g f r o m a n o n - e s t re - a s s e s s m e nt o rd e r a l s o m e rge s in v oi d . 11 . I n t he re s u l t , t he a p p e a l of t h e R e ve n ue is d i sm i s s e d w h e re a s t he C r o s s O b j e c t i on of t h e a s s e s s e e i s a l l o w e d . Order pronounced in the open Court on 13/06/2024 Sd/- Sd/- [SUDHIR KUMAR] [PRADIP KUMAR KEDIA] JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: /06/2024 Prabhat