Glaring mistakes in reasons recorded in writing, Approval u/s 151 also improper- Delhi High court quashes notice u/s 148 ignoring plea of alternative remedy.

Citation-Synfonia Tradelinks Private limited Vs ITO

Court- Delhi High court
Date-26th March 2021

In a case where there was complete non application of mind not only in the way reasons were recorded but also the way in which the sanctioning authority simply put rubber stamp “approved” the Delhi High court relying on the famous Calcutta Discount Constitution Bench judgement of apex court reported in 41 ITR 191 and other land mark judgements, quashed the notice u/s 148 which was issued allegedly to tax income arising on account of bogus share capital and share premium on the basis of search conducted at the entry operator’s place where the said entry operator alleged to have invested in the appellant herein.

Another land mark judgement on reassessment u/s 148.

Ramesh Patodia
30-03-2021