The assessment of the petitioner was completed u/s. 143(3) of the Act assessing the   income u/s. 115JB of the Act. Commissioner issued show cause notice u/s. 263 of the Act on account  Diminution in the value of investment   which was  debit in the profit & Loss account and allowed while computing the book profit. After considering the reply the revision proceeding was dropped. Thereafter the petitioner received notice u/s 148 of the Act. One of the recorded reason was diminution in the value of investment in a subsidiary and debit in the profit and loss account. Objection of the petitioner was dismissed. On writ   allowing the petition the Court held that PCIT review the assessment order under Section 263 of the Act and passed an order directing the proceedings initiated under Section 263 of the Act to be dropped. Later grant approval under Section 151 of the Act to re-open an assessment. This shows total non-application of mind by the PCIT while according the approval. Relied on German Remedies Ltd. v. DCIT. (2006) 287 ITR 494 (Bom.)(HC)  The Court also held to grant or not to grant approval under Section 151 of the said Act to re-open an assessment is coupled with a duty and the Commissioner was duty bound to apply his mind to the proposal put up to him for approval in the light of the material relied upon by the Assessing Officer. Such power cannot be exercised casually, in a routine and perfunctory manner. Reassessment notice and order disposing the objection was quashed.   (WP. No. 3555 of 2019, dt. 13-1-2022) (AY. 2012-2013)

Godrej and Boyce Manufacturing Co. Ltd. v. ACIT (Bom.)(HC) (UR)