ITAT Decision: Assessments Void Without Mandatory Approval u/s 153D, Assessee's Appeals Allowed.

The ITAT ruled in favor of the assessee, determining that the assessments were void due to the absence of mandatory approval under Section 153D of the Income Tax Act. The Tribunal allowed the assessee's appeals and dismissed the revenue's appeals, granting the department an opportunity to present evidence to challenge the decision.

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Issues involved: Appeals by assessee and revenue against common order of Commissioner of Income Tax (Appeals) for AY 2010-11 onwards till AY 2015-16.

Grounds raised by assessee:
1. Challenge to assessment and additions made under u/s 153A r.w.s143(3) of the Income Tax Act, 1961.
2. Illegal issuance of Section 143(2) notice.
3. Claim of completed assessment without incriminating material for additions.
4. Lack of incriminating material for the relevant year for additions.
5. Mechanical approval u/s 153D leading to illegal assessment.
6. Illegal Section 14A disallowance due to lack of satisfaction by AO.

Proceedings:
- Assessee pressed ground no. 5, related to approval under Section 153D.
- Assessing Officer's delay in providing compliance led to directions for explanation.
- Assessing Officer submitted reasons for delay and was directed to submit a factual report.
- CIT (DR) presented the report for Bench's consideration.

Judgment:
- Assessee relied on Delhi High Court judgment to argue that absence of order under section 153D renders assessments void.
- Department defended with reference to approval letter, but failed to produce evidence.
- Tribunal held that prior approval u/s 153D is mandatory and not proven in this case.
- Allowed additional ground no. 5 for assessee, subject to department producing evidence.
- Assessee's appeals allowed, revenue's appeals dismissed.

Conclusion:
The Tribunal's decision favored the assessee due to the lack of evidence for the mandatory approval under section 153D, rendering the assessments void. The department was given the opportunity to provide evidence to contest the issue further.

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