ITAT quashes Reassessment Order passed without fulfillment of criteria u/s 151 of Income Tax Act [Read Order]

The Income Tax Appellate Tribunal (ITAT) Delhi bench quashed reassessment order passed under Section 148 of the Income Tax Act, 1961 without fulfilled the criteria mentioned under Section 151 of the Income Tax Act.

Assessee, Agroha Fincap Ltd filed the appeal against the reassessment order passed under Section 148 of the Income tax Act without fulfilling the criteria mentioned under Section 151 of the Income Tax Act before the tribunal.

During the appeal proceedings before the bench  Raj Kumar Gupta, counsel for the assessee submitted that approval under Section 151 of the Income Tax Act is fatally defective, mechanical and without application of mind, which makes the whole proceeding without jurisdiction, illegal and unwarranted.

Om Parkash, Counsel for the revenue,  supported the orders of the authorities below and submitted that approving authority has granted approval under Section  151 of the Income Tax Act by considering the entire facts and circumstances of the present case and due application of mind.

It was observed by the tribunal that merely giving approval by mentioning “Yes, I am convinced it is fit case for reopening of assessment under Section 147 by issuing notice under Section 148 Income Tax Act” is not compliance with the mandatory requirement of granting approval under Section  151 of the Income Tax Act.

After considering  the facts submitted by both parties, the single member bench of C.M. Garg (Judicial Member) observed that the reassessment was concluded without fulfilling the criteria mentioned under Section 151 of the Income Tax Act. Therefore the bench quashed the reassessment order.

To Read the full text of the Order CLICK HERE

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