2018 (5) TMI 161

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....s appeal: "(i) Whether the Ld. Tribunal committed gross illegality in remanding the matter back to the CIT to decide it on merit though no mandatory prior approval/permission was obtained by the Assessing Officer under Section 153D? (ii) Whether in the absence of prior approval/permission the assessment order passed by Assessing Officer is null and void? (iii) Whether in fact and circumstances of the case, the action of the ld. Tribunal passing the impugned order dated 02.01.2017 Annexure-A7 is legally sustainable in the eyes of law?" The assessee is a limited company engaged in the business of forging tractor parts and auto parts at Ludhiana. A search was conducted at the business premises of the assessee on 2....

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....al was allowed. The Tribunal in the order dated 25.01.2017 set aside the order of the CIT. The matter was restored to CIT for deciding the case on merits irrespective of the fact that there was no approval under Section 153D before passing the order dated 18.03.2014. Although the assessee claims that three substantial questions of law arise, in fact the issue involved in the present appeal is:- "Whether under Section 153D of the Act there is a requirement of fresh approval for complying with the remand directions under Section 263, in a case where the assessment under Section 153A of the Act was originally framed after compliance of Section 153D of the Act?" We answer the question against the assessee. Section 153D is as unde....

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....complying the remand directions. The approval dated 24.12.2010 in fact was to the effect that assessment of assessee can be passed under Section 153A. Remand direction was that the assessment under Section 153A should be framed again. There was no occasion of fresh assumption of jurisdiction to frame assessment. Rather it was in continuation of earlier proceeding which was duly approved. Even otherwise there is no question of seeking an approval from the Joint Commissioner or the Additional Commissioner Officer lower in rank than Commissioner for complying with the directions given by the Commissioner. The CIT (Appeals) allowed the appeals of the assessee on the basis that compliance of Section 153D of the Act was mandatory. It is not th....