Appeal allowed due to lack of approval for assessment order under section 153D.

The Tribunal allowed the appeal of the assessee, finding that the assessment order under section 153A was erroneous due to the lack of proper approval under section 153D. The failure to obtain prior approval before passing the assessment order was deemed a violation of statutory provisions, leading to the quashing of the assessment order for Assessment Years 2007-08 to 2013-14. The judgment emphasized the significance of strict compliance with legal requirements, particularly concerning approvals for assessment orders in cases of search or requisition under the Income Tax Act.

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Issues:
Challenge to the sanctity of approval u/s 153D for completion of assessment u/s 153A.

Analysis:

Issue 1: Challenge to the sanctity of approval u/s 153D
The appeals were filed against the order of the Commissioner of Income Tax (Appeals) for Assessment Years 2007-08 to 2013-14, originating from the order of the Deputy Commissioner of Income Tax, Central Circle-1, Jalandhar. The main contention raised by the assessee was regarding the sanctity of the approval u/s 153D for passing the assessment order u/s 153A. The assessee argued that the approval granted by the Additional Commissioner of Income Tax was mechanical and without proper application of mind. The approval was granted on 27.07.2016, but received by the Assessing Officer on 28.07.2016, after the assessment order was already passed on 27.07.2016. The assessee contended that this violated the provisions of section 153D, which requires prior approval of the Joint Commissioner before passing an assessment order. The assessee relied on the judgment of a Coordinate Bench in a similar case, which was decided in favor of the assessee.

Issue 1.1: Compliance with Section 153D
The Assessing Officer sent the record to the Additional Commissioner of Income Tax for approval on 27.07.2016, and the approval was granted on the same day. However, the approval was received by the Assessing Officer on 28.07.2016, after the assessment order was passed. The contention was that the approval should have been received before or during the passing of the assessment order, as mandated by section 153D. The failure to comply with the requirement of prior approval rendered the assessment order erroneous and liable to be quashed. The argument was supported by the fact that the approval was granted after the assessment order was already passed, indicating a clear violation of the statutory provision.

Conclusion:
The Tribunal found merit in the assessee's argument regarding the lack of proper approval u/s 153D before passing the assessment order u/s 153A. The failure to obtain prior approval as required by law rendered the assessment order erroneous. Therefore, the appeal of the assessee was allowed, and all the appeals were allowed accordingly. The judgment highlighted the importance of strict compliance with statutory provisions, especially regarding the requirement of prior approval for assessment orders in cases of search or requisition under the Income Tax Act.

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