Section 153D approval without application of mind can invalidate a Section 153A assessment and quash the order.

Approval under Section 153D must reflect application of mind before an assessment under Section 153A can be sustained. The additional ground on validity of the approval was admitted as a legal issue, and the approval was found defective because it was issued without proper consideration of the assessee's case, following the coordinate bench view on the same approval process. The assessment order was therefore quashed and the additional ground allowed.

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Issues: Whether the assessment order was liable to be quashed for want of valid approval under Section 153D of the Income-tax Act, 1961.

Analysis: The approval under Section 153D was granted on the same date on which draft assessment orders were forwarded, and the approval covered multiple assessees including the assessee. In the light of the earlier Tribunal view relied upon, such approval was treated as having been granted without application of mind and therefore as invalid in law. Once the approval was held invalid, the assessment framed under Section 153A could not be sustained.

Conclusion: The assessment order was quashed and the additional ground was allowed in favour of the assessee.

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