TaxTMI 
TaxTMI 
2021 (6) TMI 933
X X X X Extracts X X X X
X X X X Extracts X X X X
.... the Juyal Group covering the case of the assessee. Pursuant to the search, the assessment for the year under consideration was completed u/s 153A(1)(b) r.w.s. 143(3) of the Act vide order dated 28/03/2013. The Assessing Officer (AO) made additions of Rs. 36,05,000/- and Rs. 36,00,950/- as undisclosed investment and unexplained credit u/s 68 of the Act respectively. The Ld. CIT (A) has upheld the additions made by the assessing officer and hence the assessee is in appeal before us. 2.1 The assessee has raised the following grounds of appeal: 1. That in facts and circumstance of the case, the Learned CIT has erred wrongly in sustaining the addition of Rs. 72,05,950/ - treating Rs. 36,00,950/ - as unexplained cash credit and Rs. 36,05,000/- as unexplained investment. 2. That in facts and circumstances of the case, sustaining the addition of Rs. 36,00,950 / - without going through the Balance Sheet wherein at the liability side the name of M/s Bankev Bihari Marketing (P) Ltd. is clearly mentioned and the party has filed the confirmation of account. The addition is arbitrary and illegal. 3. That in facts and circumstances of the case, the Assessing Officer has incorrectly invoke....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... date i.e. 28/03/2013. The Ld. Counsel further highlighted that a common approval was accorded to the draft orders passed in the cases of 20 assessees in very limited time i.e. only on a single day. It was the submission of the Ld. Counsel that the approving authority has mechanically granted the approval without even going through the draft assessment order and as such the approval u/s 153D of the Act was invalid and bad in law. 5.0 The Ld. DR, on the other hand, placed on record the report submitted by the assessing officer in respect of the additional grounds taken by the assessee and argued that the approval accorded by the Addl. CIT u/s 153D was valid. 6.0 We have considered the rival submissions and have gone through the material available on record. As far as the issue of admissibility of additional grounds is concerned, it is noted that the issue of approval u/s 153D of the Act is a legal ground and goes to the very root of the matter. Further, it is observed that no new facts are required for adjudication of the additional grounds and same can be decided on the basis of material available on record which duly forms part of assessment record. Moreover, even the assessing ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ing at the search material. In these circumstances, we have no doubts in our mind that the approving authority has acted casually and granted the approval u/s 153D of the Income tax Act, 1961 in a mechanical manner without judicious exercise of power. 7.3 At this juncture, it is relevant to make a reference to the provisions of section 153D of the Income tax Act, 1961: "Prior approval necessary for assessment in cases of search or requisition 153D. No order of assessment or reassessment shall be passed by an Assessing Officer below the rank of Joint Commissioner in respect of each assessment year referred to in clause (b) of sub-section (1) of section 153A or the assessment year referred to in clause (b) of sub-section (1) of section 153B, except with the prior approval of the Joint Commissioner: Provided that nothing contained in this section shall apply where the assessment or reassessment order, as the case may be, is required to be passed by the Assessing Officer with the prior approval of the Principal Commissioner or Commissioner under sub-section (12) of section 144BA." 7.4 From a bare reading of the section, it is clear that the Statute has placed inbuilt checks and b....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ssment order or reassessment order in search cases, then, it is the duty of the JCIT to exercise such powers by applying his judicious mind. We are of the view that the obligation of the approval of the Approving Authority is of two folds ; on one hand, he has to apply his mind to secure in build for the Department against any omission or negligence by the A.O. in taxing right income in the hands of right person and in right assessment year and on the other hand, JCIT is also responsible and duty bound to do justice with the tax payer [Assessee] by granting protection against arbitrary or unjust or unsustainable exercise and decision by the A.O. creating baseless tax liability on the assessee and thus, the JCIT has to discharge his duty as per Law. Thus, granting approval under section 153D of the I.T. Act is not a mere formality, but, it is a supervisory act which requires proper application of administrative and judicial skill by the JCIT on the application of mind and this exercise should be discernable from the Orders of the approval under section 153D of the I.T. Act. 12. It may be noted that provisions of Section 153D provides for approval in case of ["Each"] the assessment....
X X X X Extracts X X X X
X X X X Extracts X X X X
....e noted that even in some of the Talwar group of cases approval is granted prior to 30.12.2017 but in main cases of Shri Sanjay Duggal and Rajnish Talwar the approval is granted on 30.12.2017. Therefore, without granting approval in the main cases how the JCIT satisfied himself with the assessment orders in group cases which is also not explained. Therefore, the approval granted by the JCIT in all the cases are merely technical approval just to complete the formality and without application of mind as neither there was an examination of the seized documents and the relevance of various observations made by the Investigation Wing in appraisal report. Thus, we hold the approval under section 153D have been granted without application of mind and is invalid, bad in Law and is liable to be quashed. Since we have held that approval under section 153D is invalid and bad in law, therefore, A.O. cannot pass the assessment orders under section 153A of the I.T Act against all the assessees. Therefore, all assessment orders are vitiated for want of valid approval under section 153D of the I.T. Act and as such no addition could be made against all the assessees. In view of the above, we set ....