The Ld. AO sought to reopen the Assessment for the relevant AY by way of notice u/s 148 of the Act which was issued beyond four years but within six years from the end of the relevant AY. The Assessee file a letter requesting a copy of reasons recorded together with the sanction from the competent authority in terms of section 151, however, the AO furnished only an extract of such reasons recorded to the Assessee and the copy of the sanction/approval from the competent authority was not provided at all. The objections filed by the Assessee to the reasons recorded for reopening which were disposed of by the AO by way of a separate order on the same day. Further objections filed in respect of such order were dealt with and disposed of by the AO in the reassessment order u/s 143(3)/144C(3) r.w.s. 147 of the Act. The CIT(A) dismissed the grounds raised by the Assessee on the validity of reopening of assessment and assumption of jurisdiction by the AO.

The Tribunal noted that the full text of reasons recorded for reopening as well as sanction obtained u/s 151 was furnished to the Assessee during the course of the hearing. It observed that in the full text of the reasons recorded, omission on the part of Assessee was mentioned as a general and vague statement without specifically pointing out as to what was the clear omission or failure on the part of the assessee. The reasons started with the word “on verification of records…” which shows that the entire information was available before the AO, therefore there was no tangible material available to form belief that income has escaped assessment. Even the sanction u/s 151 for reopening of assessment u/s 147 suffered from jurisdictional defect. In view of the above, the reopening of the Assessment was quashed. (AY. 2007-08)