Mechanical manner of approval is not valid u/s 148 Reopening of reassessment

 IN THE CASE OF PRADEEP KUMAR BANERJEE VS. CIT(A) DELHI (ITAT KOLKATA-2025)

The issue was related to the validity of reopening of assessment - original return of income earlier filled which was revised later however, the ld. AO while reopening the assessment and while obtaining the approval of the competent authority has failed to take cognizance of the same - as argued approval by the PCIT was given in a mechanical manner without proper satisfaction. AO noted in the reasons that the total payments made by the assessee were Rs. 34,82,179/-, however, the same was incorrect and as per Form 26AS (TDS) it was Rs. 34,95,369/-. Similarly, the figure noted from the profit and loss account was stated at Rs. 26,66,799/-, which was also factually incorrect. As in the column 13 of reasons recorded, PCIT stated ‘fit case, approved’ and no satisfaction was recorded by the ld. PCIT before granting the approval. The case of the assessee is squarely covered by the decision of Capital Broadways Pvt. Ltd. [2024(10) TMI 311 - DELHI HIGH COURT] wherein as decided the similar issue by holding that mere mechanical manner of approval is not valid and the reopening made based upon that said approval is bad in law. Besides, this assessment was framed by ignoring the revised return filed by the assessee. Even the revised return was duly processed by the CPC. Therefore, the re-assessment proceedings initiated on the basis of such incorrect and vague facts and invalid approval cannot be sustained. As decided in Mangalore Chemicals & Fertilizers Ltd. [1991(1) TMI 70 - KARNATAKA HIGH COURT] and Babubhai Ramanbhai Patel [2017(7) TMI 744 - GUJARAT HIGH COURT] wherein the order of the Hon'ble court held that once a revised return is filed, the original return must be taken to have been withdrawn and substituted by a fresh return for the purpose of assessment. Appeal of the assessee is allowed.