Prior approval under tax law upheld where brief Section 153D approval showed application of mind and no prejudice was proved.

Section 153D requires prior approval of the Joint Commissioner before completion of specified assessments or reassessments, but the approval need not be a detailed order if the record shows consideration of the materials placed before the authority. The Court declined to presume absence of application of mind merely because the approval was brief, and relied on the presumption of regular official action under Section 114 of the Evidence Act. It also noted that the matter had been remanded for fresh adjudication with liberty to raise all contentions and adduce evidence, so no prejudice was established. The approval was treated as valid and no substantial question of law was found to arise.

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Issues: Whether the assessment order was invalid for want of proper prior approval under Section 153D of the Income-tax Act, 1961, and whether any substantial question of law arose.

Analysis: Section 153D requires prior approval of the Joint Commissioner before an assessment or reassessment is passed in specified cases. The approval record showed that the Joint Commissioner acted on the basis of materials placed before him, and the Court declined to presume absence of application of mind merely because the approval was brief. Approval under the provision need not take the form of a detailed assessment order, and the presumption under Section 114 of the Indian Evidence Act, 1872 supported regular official action. The matter had also been remanded by the appellate tribunal for fresh adjudication, with liberty to the assessee to raise all contentions and produce evidence, so no prejudice was found.

Conclusion: The approval under Section 153D was treated as valid, and no substantial question of law was found to arise. The appeal failed on merits and was not entertained further.

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