Section 153D compliance allows AO to give remand effect under Section 153A with assessment framed under Section 143(3)/263

HC held Section 153D was duly complied with and an assessing officer need not obtain fresh approval to give effect to a remand under Section 263; Section 153D governs assumption of jurisdiction to frame assessments under Section 153A and does not bar the AO from framing assessment while complying with a remand. The AO's order, though headed with Section 143(3)/263, was correctly treated as under Section 153A read with Section 143(3) pursuant to the remand. Tribunal's view was upheld and the appeal was dismissed.

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Issues involved:
1. Whether the Tribunal's decision to remand the matter back to the CIT without prior approval under Section 153D was legalRs.
2. Whether the absence of prior approval under Section 153D makes the assessment order null and voidRs.
3. Whether the Tribunal's order restoring the matter to the CIT for a fresh assessment was legally sustainableRs.

Analysis:
Issue 1: The Tribunal remanded the matter back to the CIT without prior approval under Section 153D. The appellant argued that this was a gross illegality. However, the assessment order dated 24.12.2010 was passed after obtaining approval under Section 153D. The subsequent remand did not nullify this approval, as the A.O. was merely complying with the revisional authority's directions, not assuming jurisdiction under Section 153A again. Section 153D requires prior approval for passing an assessment order, not for complying with remand directions. The approval given in 2010 was sufficient for the subsequent actions.

Issue 2: The CIT (Appeals) allowed the appeal based on the absence of fresh approval under Section 153D before the order dated 18.03.2014. However, the Tribunal rightly held that Section 153D pertains to assuming jurisdiction to pass an assessment order under Section 153A, and compliance with remand directions does not require fresh approval. The A.O. did not lose jurisdiction by following the remand order. Compliance with Section 153D had been duly met, and the argument that even a remand order requires Section 153D compliance is beyond the scope of the section.

Issue 3: The appellant contended that the order dated 18.03.2014 was passed under Section 143(3) read with Section 263, not Section 153A. However, the order clearly indicated it was passed under Section 153A read with Section 143(3), pursuant to the remand under Section 263. The Tribunal's decision to restore the matter to the CIT for a fresh assessment was legally sustainable, as the A.O. was following the revisional authority's directions.

In conclusion, the High Court dismissed the appeal, answering the questions of law against the appellant. The judgment clarified that compliance with Section 153D was not mandatory for following remand directions and that the A.O. did not lose jurisdiction by complying with the remand order. The Tribunal's decision to remand the matter back to the CIT was upheld as legally sustainable.

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