TaxTMI 
TaxTMI 
TaxTMI 
2023 (4) TMI 487
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....r :- "1. That the Ld. CIT (A) has erred on facts and in law in deleting the addition of Rs.5,40,25,000/- treated as unexplained money u/s 69A of the IT Act overlooking the facts and circumstances of the case which clearly suggest that the assessee was not having any cash out of sales consideration and whatever documents submitted were just self serving documents to which any third party verification was not possible. 2. That the Ld. CIT (A) has erred on facts and in law in deleting the addition of Rs.5,40,25,000/- overlooking the facts that in the just preceding years the assessee was not showing any substantial cash sales and to cover up the cash seized by the ED, he made a story that the said cash was out of cash sales of just 3 days....
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.... transactions of assessee already recorded in regular audited books by invalid recourse to sec. 69A of the Act, is without authority of law and is ultra vires to provisions of the Act, so ld cit-a ought to have quashed the assessment order itself on this jurisdictional count itself which is ergo pleased here." 4. Since the cross objection is with regard to the validity of the notice, we take that first. 5. Ld. Counsel of the assessee pressed the issue that there is no valid and requisite mandatory statutory approval under section 153D of the Income-tax Act, 1961 (for short 'the Act') and hence the orders of authorities below are void ab initio & jurisdictionally flawed and the assessment is to be quashed. In this regard, ld. Coun....
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.... when the approval of the case was given on the same day and within a few hours of receipt and when there is very little time left with the AO to complete the assessment and the mistakes are glaring, it clearly shows that there is complete non-application of mind by the AO as well as the Addl. CIT. The Ld. Counsel for the Assessee submitted that if the Addl. CIT would have gone through the records, he would have noticed the blunders committed by the AO. He submitted that since, the assessment records were never sent to the Addl. CIT, therefore it was not possible on the part of the Addl. CIT to take a decision as to whether the order was as per facts and law. The ld. counsel for the Assessee referring to the following decisions submitted th....
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....roval under section 151 of the Act, which is pari-materia with the provisions of section 153D of the Act, fully cover the issue of validity of impugned approval u/s 153D of the Act. Referring to the above decision, he submitted that since the approval given by the Addl. CIT u/s 153D of the I.T. Act,1961 in the instant case being not in accordance with law, therefore, the assessment order passed u/s 153A r.w.s. 143(3) of the Act stand vitiated since, the said order suffers from various infirmities. He accordingly submitted that the assessment order passed u/s 153A r.w.s. 143(3) of the Act should be quashed." 7. After due analysis, the ITAT concluded as under :- "17. From the analyzations made above, it emerges that the function to be per....
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....nd. The addition of Rs. 15,04,35,000/- made by the AO in the instant case is completely out of the scene in the final assessed income shows volumes. 17.2 Even the factual situation is much worse than the facts decided by the Tribunal in the case of Sanjay Duggal (supra). In that case, at least the assessment folders were sent whereas in the instant case, as appears from the letter of the Assessing Officer seeking approval, he has sent only the draft assessment order without any assessment records what to say about the search material. As mentioned earlier, there are infirmities in the figures of original return of income as well as total assessed income and the Addl. CIT while giving his approval has not applied his mind to the figures m....
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....d subsequent order dated 09.09.2021 (supra) for A.Y. 2009-10 and 2010-11 & 2011-12 (supra), as has been given without application of mind and thus the same is invalid bad in law and liable to be quashed and Tribunal has quashed the same. Therefore, the application of assesses under Rule 27 of the ITAT Rules is allowed by following the order of ITAT Delhi Bench in the case of Subhash Dabas dated 08.09.2021 for A.Y. 2009- 10(supra) and 09.09.2021 for A.Y. 2010-11 and 2011-12 (supra). We, therefore quash the assessment order passed u/s. 153A of the Act for A.Y. 2010-11 in the case of present assessee i.e. M/s. Tirupati Buildings & Offices Pvt. Ltd. Resultantly, all additions are deleted. The ground raised by the assessee under Rule 27 of the I....