Shri Prakash Chand Bohra, JODHPUR V. ITO, BHILWARA

ITA 553/JODH/2014

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 5205 (ITAT-JODHPUR)
• Duration Of Justice: 1 year(s) 4 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 14-03-2016
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2006-2007
• Appeal Filed On: 03-11-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: S L MOURYA
• Section: 148

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL JODHPUR BENCH, JODHPUR BEFORE SHRI N.S. SAINI , HONBLE ACCOUNTANT MEMBER AND SHRI GEORGE MATHAN, HONBLE JUDICIAL MEMBER ITA NO. 553 / JODH /201 4 (ASST. YEAR : 200 6 - 0 7 ) SHRI PRAKASH CHAND BOHRA, B - 78, SHASTRI NAGAR, BHILWARA. VS. ITO, WARD - 3, BHILWARA. PAN NO. AHXPB 4450 B (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI RAJENDRA JAIN ADV. DEPARTMENT BY : S HRI S.L . MOURYA - DR DATE OF HEARING : 1 4 / 0 3 /201 6 . DATE OF PRONOUNCEMENT : 1 4 / 03 /201 6 . O R D E R PER N.S. SAINI , ACCOUNTANT MEMBER THIS IS AN APPEAL FILED BY THE ASSESSEE AGAINST THE ORDER OF COMMISSIONER OF INCOME TAX (APPEALS) , AJMER , DATED 14 /0 8 /201 4 . 2. IN GROUNDS NO. 1 TO 6 , THE ASSESSEE HAS CHALLENGED THE VALIDITY OF REOPENING OF THE ASSESSMENT UNDER SEC. 148 OF THE ACT. 3 . AUTHORIZED REPRESENTATIVE OF THE ASSESSEE ARGUED BEFORE US THAT AT PAGE NO. 21 OF THE PAPER BOOK FILED BY THE ASSESSEE IS THE REASONS SUPPLIED TO THE ASSESSEE BY THE ASSESSING OFFICER FOR REOPENING OF THE ASSESSMENT. HE POINTED OUT THERE FROM THAT THE APPROVAL TO THE REASONS FOR REOPENING OF THE ASSESSMENT WAS GRANTED BY THE JCIT, BHILWARA BY WRITING YES I AGREE . IT WAS THE SUBMISSION THAT THE 2 ITA NO. 553 / JODH /201 4 APPROVAL FOR REOPENING OF THE ASSESSMENT TO THE ASSESSING OFFICER WAS GRANTED BY THE JCIT WITHOUT STATING THE REASONS AND WITHOUT APPLICATION OF HIS MIND . HENCE, REOPENING IS BAD IN LAW. FOR THIS , HE RELIED ON THE DECISION OF THE HON'BLE MADHYA PRADESH H IGH COURT IN ITA NO. 82/22012 DATED 14/10/2014 IN THE CASE OF CIT VS. GOENKA LIME AND CHEMICAL LTD. , WHEREIN IT WAS HELD THAT WHEN THE SANCTIONING AUTHORITY ONLY RECORDED SO YES I AM SATISFIED, THEN SANCTION HAS TO BE HELD AS MECHANICAL WAY OF RECORDING SATISF ACT ION WHICH ACCORDS A SANCTION CLEARLY UNSUSTAINABLE AND HENCE THE ORDER OF THE TRIBUNAL QUASHING THE REASSESSMENT AND NOTICE UNDER SEC. 148 OF THE ACT WAS UPHELD. HE FURTHER RELIED ON THE DECISION OF THE HON'BLE DELHI HIGH COURT IN THE CASE OF CENT RAL INDIA ELECTRIC SUPPLY CO LTD. V. ITO [( 2011 ) 333 ITR 237 (DEL.) ] WHEREIN IT WAS HELD THAT A MERE STAMP WAS AFFIXED WHICH WAS SIGNED BY AN UNDER SECRETARY UNDERNEATH A STAMP ED YES AGAINST THE RELEVANT COLUMN IN THE PROFORMA , IT SUGGESTS THAT THE DECISION HAS BEEN TAKEN IN A MECHANICAL MANNER. I T IS EXPECTED THAT AT LEAST A PROPER ENDORSEMENT IS MADE IN THIS BEHALF SETTING OUT BRIEF REASONS. THIS IS COMPLETELY ABSENT IN THIS CASE. THUS, THERE WAS NO PROPER APPLICATION OF MIND BY THE CBDT AND APP ROVAL ACCORDED BY IT UNDER SEC. 151 IS NOT VALID. 4 . ON THE OTHER HAND, DEPARTMENTAL REPRESENTATIVE SUPPORTED THE ORDER OF THE LOWE R AUTHORITIES. 5. WE FIND TH A T IT IS NOT IN DISPUTE THAT THE APPROVAL BY THE JCIT GIVEN TO THE REASONS RECORDED BY THE ASSESSING OFFICER FOR REOPENING OF THE ASSESSMENT FOR THE ASSESSMENT YEAR 2006 - 07 WAS BY WRITING BELOW THE REA S ONS YES I AGREE , THERE WAS NO SET OUT OF BRIEF REASONS BY THE JCIT AS TO WHY HE AGREED WITH THE REASONS OF REOPENING AS STATED BY THE ASSESSING OFFICER. THEREFORE, THE APPROVAL GRANTED BY THE JCIT FOR REOPENING OF THE ASSESSMENT FOR THE ASSESSMENT YEAR 2006 - 07 WAS NOT VALID UNDER SEC. 151 OF THE ACT. HENCE, WE QUASH THE ISSUE OF NOTICE 3 ITA NO. 553 / JODH /201 4 UNDER SEC. 148 OF THE ACT BY THE ASSESSING OFFICER FOR REOPENING OF THE ASSESSMENT UNDER SEC. 148 OF THE ACT AND CONSEQUENTLY, THE ASSESSMENT ORDER PASSED , PURSUANT TO SUCH NOTICE , IS BAD IN LAW AND HENCE , THE SAME IS ANNULLED. THUS, GROUND NO S . 1 TO 6 OF THE APPEAL ARE ALLOWED. 6 . IN VIEW OF OUR DECISION IN GROUND NOS. 1 TO 6 OF THE APPEAL , WHERE WE HAVE ANNULLED THE ASSESSMENT ORDER , THE OTHER GROUNDS OF APPEAL TAKEN BY THE ASSESSEE ON MERITS OF THE ADDITIONS HAVE BECOME INFRUCTUOUS AND HENCE, ARE NOT ADJUDICATED BY US. 7. I N THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED . ORDER PRONOUNCED IN THE COURT AT THE CLOSE OF THE HEARING ON MONDAY , THE 1 4 TH DAY OF MARCH , 201 6 AT JODHPUR . S D / - S D / - (GEORGE MATHAN) (N.S.SAINI) JUDICIAL MEMBER ACCOUNTANT MEMBER D ATED : 1 4 TH MARCH , 201 6 . VR/ - COPY TO: 1. THE ASSESS E E. 2. THE REVENUE. 3. THE CIT 4. THE CIT(A) 5. THE D.R . 6. GUARD FILE. BY ORDER .