The assessment was completed under section 143 (3) of the Act. The reassessment notice was issued and order disposing the objection was passed. The petitioner has objected for approval of erroneous reasons. On writ the court allowed the petition and held that while granting approval it was obligatory on the part of the Commissioner to verify whether there was any failure on the part of the assessee to disclose full and true relevant facts in the return of income filed for the assessment of income of that assessment year. It was also obligatory on the part of the Commissioner to consider whether or not power to reopen is being invoked properly. Relied on Chhugamal Rajpal v. S.P. Chaliha(1971) 79 ITR 603 (SC) and German Remedies Limited v. DCIT (2006) 287 ITR 494 (Bom)(HC). Reassessment notice and order disposing the objection was quashed. (WP No. 930 of 2022, dt. 29-4-2022)
Verna Trading v. ITO (Bom.)(HC) (UR)
S. 151 : Reassessment-Sanction for issue of notice-Mechanical approval-Non-application of mind-Approval was granted was based on erroneous statement recorded in reasons-Reassessment notice and order disposing the objection was quashed. [S. 147, 148, Art. 226]