Section 153D approval must reflect application of mind; mechanical search assessment approval was invalid.

Approval under section 153D for the search assessments was held invalid because the Joint Commissioner had received the draft orders late and had insufficient time for proper examination of the record. The Tribunal found the approval hurried, mechanical, and lacking application of mind, so the statutory safeguard for search assessments was not met. On that basis, the resulting assessment orders were unenforceable in law and the assessee's challenge succeeded.

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Issues: Whether the approval granted under section 153D of the Income-tax Act, 1961 for the search assessments was valid and, if invalid, whether the resulting assessment orders could be sustained.

Analysis: The approval recorded by the Joint Commissioner showed that the draft assessment orders were received late and there was very little time for proper examination of the records. On the facts, the approval was found to be hurried, mechanical, and lacking application of mind. The Tribunal followed its earlier view in connected group matters that such a hollow and cosmetic approval under section 153D defeats the statutory safeguard intended for search assessments and renders the assessment unenforceable in law.

Conclusion: The approval under section 153D was held invalid for non-application of mind, and the assessee's challenge succeeded.

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