Section 153D approval must show independent application of mind; mechanical consolidated approval invalidates search assessments.

Prior approval under section 153D is a mandatory jurisdictional safeguard for search assessments and must reflect independent application of mind to the draft order, seized material and appraisal report for each assessment year. A consolidated, same-day approval without year-wise reasoning or demonstrated scrutiny is mechanical and amounts to a mere formality. Such non-speaking approval does not satisfy the statutory requirement, and assessments founded on it are unsustainable in law.

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Issues: Whether the approval granted under section 153D of the Income-tax Act, 1961 for the search assessments was mechanical and without application of mind, and whether the consequent assessments were valid.

Analysis: Section 153D requires prior approval before completion of a search assessment, and the approval must reflect independent application of mind to the material for each assessment year. A consolidated approval given on the same day as the request, without year-wise reasoning and without showing examination of the draft orders, seized material, or appraisal report, does not satisfy the statutory safeguard. The approval cannot be treated as a mere formality or rubber stamp, since it is meant to protect the assessee against arbitrary exercise of power and to ensure that the superior officer actually scrutinises the material before granting consent.

Conclusion: The approval under section 153D was held to be mechanical and invalid, and the assessments founded on such approval were held unsustainable in law.

Ratio Decidendi: Prior approval under section 153D is a mandatory jurisdictional safeguard and is valid only when the approving authority independently applies mind to the material for each assessment year; a non-speaking or consolidated approval granted mechanically vitiates the assessment.

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