Mechanical approval under section 151 without application of mind vitiates reassessment jurisdiction under section 147; entire proceedings including consequential revision under section 263 quashed.

ORDER

PER BENCH:

1. The appeal filed by the assessee in ITA No. 209/Agr/2025 is against the revision order passed by the Learned Principal Commissioner of Income Tax, Agra-1 [hereinafter referred to as the Learned PCIT] for the Assessment Year 2010-11 on 31-3-2021 under section 263 of the Income Tax Act, 1961 [hereinafter referred to as the ‘Act’] seeking to revise the assessment order passed by the Learned Income Tax Officer, Ward 4(3)(2), Etah [hereinafter referred to as the Learned AO] dated 28-03-2022. The appeal filed by the assessee in ITA No. 208/Agr/2025 is against the order passed by the Learned National Faceless Appeal Centre (NFAC) [hereinafter referred to as the Learned CITA] dated 27-9-2024 against the giving effect order to section 263 proceedings passed by the Learned AO under section 147 r.w.s. 263 of the Act dated 28-03-2022.

2. At the outset, we find that there is a delay in filing of appeal by the assessee before us by 1416 days in ITA No. 209/Agr/2025 and delay of 141 days in ITA No. 208/Agr/2025. Though the assessee had sought condonation of delay by way of sufficient reasons, considering the inordinate delay in filing of these appeals, we deem it fit and appropriate to impose cost of Rs 25,000/- in toto on assessee to be deposited with Allahabad High Court Legal Aid Authority within one month from the date of receipt of this order of the Tribunal. Subject to payment of the cost of Rs 25,000 as stipulated above, the appeals are hereby admitted and taken up for adjudication.

3. The assessee had raised a ground before us challenging the validity of assumption of jurisdiction u/s 147 of the Act per se which is the original assessment sought to be revised and consequential order being passed thereon.

4. We have heard the rival submissions and perused the material available on record. The assessee has filed his return of income on 22-03-2012 for AY 2010-11 declaring total income of Rs. 2,08,360/-. The ld AO noted that he had received information that assessee had sold an immovable property for Rs 50,72,000/- on 25-02-2010 whose circle value was Rs 50,72,000/-. The Learned AO noted that assessee had concealed the capital gains by not disclosing this transaction in his return of income, the case was reopened under section 147 of the Act. Notice under section 148 of the Act stood issued to the assessee on 24-03-2017. The re-assessment was completed under section 143(3) read with section 147 of the Act on 29-12-2017 determining total income at Rs 8,30,430/-. After making addition of Rs 6,22,065/- under the head ‘income from long term capital gains’. In this assessment, no addition was made on account of sale consideration of immovable property of Rs 50,72,000/- which was subject matter of reasons recorded as it was noticed by the Learned AO that the said sum was duly disclosed by the assessee in the return of income filed originally itself. This assessment was subjected to revision proceedings by the Learned PCIT under section 263 of the Act vide order dated 31-03-2021 wherein certain directions were issued by the Learned PCIT to recalculate the long term capital gains without disturbing the sale consideration figure thereon. The giving effect order to section 263 proceedings stood passed by the Learned AO on 28-03-2022 under section 263/147/143(3) of the Act. In the said giving effect order, the Learned AO made certain additions on account of cost of construction of property sold.

5. The reasons recorded for reopening the assessment for assuming jurisdiction o