CBDT should consider formulating a scheme whereby officers are trained how to apply their minds: Bombay HC

While passing an order in a matter of Sharvah Multitrade Company Private Limited v/s Income Tax Officer, Bombay High court commented that CBDT should consider formulating a scheme whereby officers are trained how to apply their mind while recording reasons for reopening a case. Further, the court said that the copy of the assessment order should be sent to the Chairman, CBDT who may also advise the concerned Commissioners not to grant approval under Section 151 of the said Act mechanically but after considering the reasons carefully and scrutinizing the same.

Court further said that there has been total non-application of mind even while filing the affidavit in reply to the petition by the Income Tax officer.

What Court said:

Perhaps this officer does not know the meaning of the words “application of mind” because he seems to be using this expression without applying his mind. The notice has been issued under Section 148 of the said Act on 31st March 2021 for Assessment Year 2015-2016. The assessment had been completed under Section 143(3) of the said Act on 28th September 2017. Therefore, proviso to Section 147 of the said Act shall apply and respondents will have to make out a case of failure on the part of the petitioner to truly and fully disclose material facts.

Click on the link given below to read the full order.