Approval under Section 153D invalidated for lack of application of mind; defect not cured under Section 292B

HC held the approval under section 153D invalid for lack of application of mind, because the ACIT granted approval based solely on a draft assessment order and failed to examine the assessment record or search material, missing a clear error in declared income figures. The Tribunal correctly concluded the approval was granted without proper consideration, and the defect could not be cured under section 292B. The decision was against the revenue, setting aside the approval and related additions.

---

---

Issues:
1. Condonation of delay in re-filing the appeal.
2. Validity of approval granted under Section 153D of the Income Tax Act, 1961.

Condonation of Delay Issue:
An application was filed seeking condonation of a 180-day delay in re-filing the appeal by the appellant/revenue. The respondent/asseessee did not oppose the application, and the court allowed the prayer made in the application, disposing of the matter accordingly.

Validity of Approval Issue:
The appeal in question pertained to the Assessment Year 2017-18 and aimed to challenge the order passed by the Income Tax Appellate Tribunal. The Tribunal had set aside additions made to the income of the respondent/asseessee due to a lack of application of mind by the Additional Commissioner of Income Tax (ACIT) in granting approval under Section 153D of the Income Tax Act, 1961. The ACIT failed to notice errors in the assessment order, which included significant additions to the assessed income. The Tribunal found a complete non-application of mind by the ACIT, emphasizing that the approval was granted without examining the assessment record or search material. The Tribunal concluded that the approval was granted in a mechanical manner without proper consideration, rendering it invalid in the eyes of the law. As a result, the order passed under Section 153A was quashed, and the appeal was closed without finding any substantial question of law for consideration.

This summary provides a detailed overview of the issues involved in the legal judgment, highlighting the key arguments and conclusions reached by the court for each issue.

---