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| The Tax Publishers2021 TaxPub(DT) 3196 (Chd-Trib) INCOME TAX ACT, 1961
Section 153D Section 153A
Relevant para of the approval letter merely recorded: 'Necessary statutory approval under section 153D is given to pass above assessment order as such'. This approach of Addl. CIT rendered the approval to be a mere formality and could not be considered as actual approval in law. Hence, assessment framed under section 153A was not sustainable.
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Search and seizure - Assessment under section 153A - Validity - Non-application of mind by Addl. CIT, while granting statutory approval under section 153D
Assessee challenged validity of search assessment framed under section 153A on the ground of non-application of mind by Addl. CIT, while granting statutory approval under section 153D. Held: Relevant para of the approval letter merely recorded: 'Necessary statutory approval under section 153D is given to pass above assessment order as such. Assessment record in this case is returned herewith' which clearly proves that the Addl. CIT had routinely given approval to AO to pass order only on the basis of contents mentioned in the draft assessment order without any application of mind and seized materials were not looked at because that was not available before him at the time of granting of approval to draft assessment order and other enquiry and examination was never carried out. This approach of Addl. CIT rendered the approval to be a mere formality and could not be considered as actual approval in law. Hence, assessment framed under section 153A was not sustainable.
Relied:Arch Pharmalabs Ltd. v. Asstt. CIT [ITA No. 6656/Mum/2017 & Ors., dated 7-4-2021] : 2021 TaxPub(DT) 2082 (Mum-Trib).
REFERRED :
FAVOUR : In assessee's favour.
A.Y. : 2016-17
IN THE ITAT, CHANDIGARH BENCH
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