The Tax Publishers2019 TaxPub(DT) 8104 (Ctk-Trib) : (2020) 203 TTJ 0422

INCOME TAX ACT, 1961

Section 153A Section 153D

In the instant case, approving authority, Jt. CIT got five days' time but in the order of approval, Jt. CIT had simply mentioned that 'approval is hereby accorded as per section 153D for passing assessment orders. He has not mentioned that relevant appeal folders/files along with assessments/reassessment orders had been perused or any discussion or consultation has been made with AO prior to granting of approval under section 153D of the Act. Accordingly, approval by Jt. CIT had been granted in a mechanical manner without application of mind and, consequently assessments/reassessment orders passed by AO on such approval was void and bad in law.

Search and seizure - Assessment under section 153A - Validity - Mechanical approval granted by Jt. CIT under section 153D

Assessee challenged validity of assessment framed under section 153A read with section 143(3) on the ground that while granting approval under section 153D proper procedure had not been followed and there was no application of mind by the approving authority, i.e., Jt.CIT.Held: Granting of approval under section 153D cannot be treated as an official formality but a statutory duty of approving authority with a corresponding obligation on him to examine relevant record and assessment orders and thereafter grant the approval. In the instant case, approving authority, Jt. CIT got five days' time but in the order of 'approval. Jt. CIT had simply mentioned that 'approval is hereby accorded as per section 153D for passing assessment orders'. He has not mentioned that relevant appeal folders/files along with assessments/reassessment orders had been perused or any discussion or consultation has been made with AO prior to granting of approval under section 153D of the Act. Accordingly, approval by Jt. CIT had been granted in a mechanical manner without application of mind and, consequently assessments/reassessment orders passed by AO on such approval was void and bad in law.

Followed:M3M India Holdings v. DCIT ITA No. 2691/Del/2018, Assessment Year 2012-13, dated 15-3-2019 : 2019 TaxPub(DT) 2376 (Del-Trib) Geetarani Panda v. ACIT (2018) 32 TTJ 703 (Ctk-Trib) : 2018 TaxPub(DT) 5809 (Ctk-Trib) and Pr. CIT v. Smt. Shreelekha Damani (2019) 307 CTR (Bom) 218 : 2018 TaxPub(DT) 7540 (Bom-HC).

REFERRED :

FAVOUR : In assessee's favour.

A.Y. : 2010-11 & 2011-12

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