ITO, WARD-1(4), GHAZIABAD V. MAYA DEVI, GHAZIABAD

ITA 1739/DEL/2019

AI Insights

The case involves cross appeals by Maya Devi and the Income Tax Officer (ITO), Ward-1(4), Ghaziabad, concerning the reopening of an assessment for the year 2009-10 under sections 144/147 of the Income-tax Act, 1961. The primary legal issue was the validity of the reopening of the assessment, which was challenged by the assessee on the grounds that the approval for reopening was mechanically granted by the prescribed authority without proper application of mind. The Tribunal, referencing the Supreme Court's decision in CIT Vs. S. Goyanka Lime and Chemical Pvt. Ltd., found in favor of the assessee, leading to the quashing of the reopening.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 40616 (ITAT-DELHI)
• Duration Of Justice: 5 year(s) 9 month(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 02-12-2024
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: E
• Next Hearing Date: 26-11-2024
• Assessment Year: 2009-2010
• Appeal Filed On: 01-03-2019
• Other Referred Cases: CIT Vs. S. Goyanka Lime and Chemical Pvt. Ltd. (2015) 64 taxmann.com 313 (SC)
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: B.S. ANAND
• Assessee Lawyers: PRAVEEN JAIN
• Keywords: Competent authority
• Section: 64

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL, DELHI BENCH: ‘E’ NEW DELHI BEFORE SHRI SATBEER SINGH GODARA, JUDICIAL MEMBER AND SHRI M. BALAGANESH, ACCOUNTANT MEMBER ITA No.1698/Del/2019 Assessment Year: 2009-10 Maya Devi, F-71, Patel Nagar, Ghaziabad Vs. ITO, Ward-1(4), Ghaziabad PAN :AFTPD6087L (Appellant) (Respondent) With ITA No.1739/Del/2019 Assessment Year: 2009-10 ITO, Ward-1(4), Ghaziabad Vs. Maya Devi, F-71, Patel Nagar-III, Ghaziabad PAN :AFTPD6087L (Appellant) (Respondent) ORDER PER SATBEER SINGH GODARA, JM These assessee’s and Revenue’s cross appeals ITA No. 1698/Del/2019 and 1739/Del/2019 for assessment year 2009-10 arise against the Commissioner of Income Tax (Appeals)-2 [in short, Assessee by Sh. Praveen Jain, Adv. Sh. Sandeep Jain, Adv. Department by Sh. B.S. Anand, Sr. DR Date of hearing 26.11.2024 Date of pronouncement 02.12.2024 ITA Nos.1698 & 1739/Del/2019 2 | P a g e the “CIT(A)”], Noida’s order dated 29.11.2018 passed in case No.32/2016-17/GZB, involving proceedings under section 144/147 of the Income-tax Act, 1961 (hereinafter referred to as ‘the Act’). 2. Heard both the parties at length. Case files perused. 3. It emerges during the course of hearing that there arises the first and foremost issue of the validity of the impugned reopening itself, which goes to the root of the matter. This is for the precise reason that the learned counsel representing assessee has invited our attention to the prescribed authority’s section 151 approval to the Assessing Officer’s reopening proposal, wherein, he has recorded “yes I am satisfied”. 4. Learned counsel’s case accordingly is that the impugned reopening itself is invalid since based on a mere mechanical approval of the said prescribed authority. We make it clear that the foregoing clinching fact of the competent authority’s mechanical approval has indeed gone unrebutted from the department side. 5. We accordingly quote CIT Vs. S. Goyanka Lime and Chemical Pvt. Ltd. (2015) 64 taxmann.com 313 (SC) upholding Hon’ble Madhya Pradesh High Court’s corresponding judgment in (2015) ITA Nos.1698 & 1739/Del/2019 3 | P a g e 56 taxmann.com 390(MP) deciding the issue against the department to the very effect. 6. Learned counsel has further furnished the assesee’s case law paper-books running into 173 pages containing of various other judicial precedents against the department. We accordingly conclude in these peculiar facts and circumstances that the impugned reopening deserves to be quashed for want of a valid approval by the learned prescribed authority in very terms. Ordered accordingly. Assessee’s appeal in ITA No. 1698/Del/2019 succeeds and the Revenue’s cross appeals ITA No. 1739/Del/2019 fails. 7. All other pleadings on merits stand rendered academic. 8. This assesee’s ITA No.1698/Del/2019 is allowed whereas Revenue’s cross appeal ITA No. 1739/Del/2019 is dismissed in above terms. A copy of this common order be placed in the respective case file. Order pronounced in the open court on 2nd December, 2024 Sd/- Sd/- (M. BALAGANESH) (SATBEER SINGH GODARA) ACCOUNTANT MEMBER JUDICIAL MEMBER Dated: 2nd December, 2024. RK/- Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(A) ITA Nos.1698 & 1739/Del/2019 4 | P a g e 5. DR Asst. Registrar, ITAT, New Delhi "