2024 (6) TMI 1293

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....s and circumstances of the case and in law, the initiation of assessment proceedings and issue/ services of notices are not in accordance with the provisions of law and accordingly the assessment order passed on the foundation of such notice(s) is liable to be quashed and the CITTA) erred in not holding so. 2 On the facts and circumstances of the case and in law, the addition of Rs 12,35,18,351/- made by the assessing officer on account of alleged unexplained cash credit u/s. 68 of the Income Tax Act 1901 beyond the scope/jurisdiction of provisions of section 153A of the Income Tax Act, 1961 and CIT(A) erred in not holding so. 3. On the facts and circumstances of the case and in law, the CIT(A) erred in confirming addition Rs.  12,35,18,554/- made by the assessing officer on account of alleged unexplained cash credit u/s 68 of the Income Tax Act, 1961. 4. On the facts and circumstances of the case and in law, the various alleged adverse inference drawn/reasons given by the assessing officer / CIT(A) for making/ confirming addition are erroneous and not sustainable in law. 5. On the facts and circumstances of the case and in law, the assessme....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... 4 Smt. Madhu Garg, AB1PG9792Q 2009-10 to 2015-16 5 Sh. Pulkit Garg, AJEPG5760A 2009-10 to 2015-16 6 Smt. Ruchi Garg AA1PG1671M 2009-10 to 2015-16 7 Sh. Pawan Kumar Garg, AAHPG8132G 2009-10 to 2015-16 8 M/s Apple Industries Ltd., AAGCA9960N 2009-10 to 2015-16 9 M/s Nirman Stelco Pvt. Ltd., AACCN4842Q 2009-10 to 2015-16 10 M/s M.G. Mettalloy Pvt. Ltd., AAGCM5789D 2011-12 to 2015-16 11 M/s Promart Retail India Pvt. Ltd. AAFCP8743B 2009-10 to 2015-16 12 M/s Apple Sponge & Power. Limit. AAFCA1965L 2009-10 to 2015-16 13 M/s Apple Metal Industries Ltd., AAACD7670E 2009-10 to 2015-16 14 M/s Apple Buildtech Ltd., AAFCA8106K 2009-10 to 2015-16 15 M/s Apple Insurance Brokers Pvt. Ltd., AAECA5320N 2009-10 to 2015-16 16 M/s Zync Global Pvt. Ltd., AAACZ5235H 2012-13 to 2015-16 17 M/s Apple Iron Enterprises Pvt. Ltd., AAHCA8642G 2010-11 to 2013-14 18 M/S Mastermind Trade-in-Private Ltd AAECM9435E 2009-10 to 2015-16   Draft assessment order received Late i.e. on 31/12/2016    &nbs....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

..... AAFCA8106K 2009-10 to 2013-14 15 M/S Apple Insurance Brokers Pvt.Ltd AAECA5320N 2009-10 to 2015-16 16 M/S Zync Global Pvt. Ltd. AAACZ5235H 2012-13 to 2015-16 17 M/S Apple Iron Enterprises Pvt. Ltd AAHCA8642G 2010-11 to 2013-14 18 M/S Mastermind Trade-in-Private Ltd AAECM9435E 2009-10 to 2015-16 3. A technical approval is accorded to pass assessment orders in the above cases on the basis of the drafts assessment orders submitted for the assessment years in reference years You are directed to ensure taking into account the seized documents/papers and comments in the appraisal report pertaining to AYs. The fact of initiation of penalty proceedings, wherever applicable, must also be incorporated in the last para of the order. The initiation of correct penalty provisions of I.T. Act u/s271 (I)(c)/271AAB per facts of the case must be ensured 4. This office reference no of approving the draft orders shall invariably be quoted in the assessment orders to be passed. A copy of final assessment orders passed in these cases should should sent to this office for record immediately on passing the assessment orders. ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....I 998 - ITAT Delhi (A.Y. 2015-16) Therefore, the issue involved in the present appeal stands covered in favour of the assessee. Reliance is also placed on the following decisions of Hon'ble Jurisdictional Allahabad High Court:- PCIT v Sapana Gupta - 2022 (12) TMI 887 - Allahabad High Court PCIT v Siddharth Gupta - 2022 (12) TMI 1021 - Allahabad High Court PCIT v Subhodh Agarwal - 2023 (2) TMI 1072 - Allahabad High Court In view of the above, it is prayed to your honour to allow the appeal. 6. On the other hand, the Ld. DR objected to the above submissions and submitted that the approval was granted by following proper approval process and he stressed that the approval is only an internal arrangement and submitted that the approval granted by JCIT is proper. 7. Considered the rival submissions and material placed on record, we observed that the approval granted by DCIT, Central Circle, Noida dated 30/12/2016 in which the approval granted u/s 153 of the Income Tax Act ('the Act' for short) were granted to the eighteen assessees including the case of the assessee. Letter granting of such approval is placed on record at page-2 of the Paper Book....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ted 12- 12-2022 Income Tax appeal no. 88 of 2022. The Hon'ble High Court inter alia observed that the compliance of S. 153D qua each assessee and for each assessment year is expected. (v) The mundane approval under Section 153D in a cosmetic manner gives infallible impression of approval on dotted line and without discharging the onus placed on competent authority thus defeats the intrinsic purpose of supervision of search assessments. Such hawkish approval has thus tarred the assessment and rendered it bad in law. 11. It may be pertinent to observe, Section 153D bestows a supervisory onus on the designated authority in respect of search related assessment and thus enjoins a salutary duty of statutory nature. The designated superior authority is thus expected to confirm to the statutory requirements in letter and spirit. As noted in the preceding paragraphs, it is a classic case of collective abdication of statutory responsibility assigned under Act and yet putting civil consequences of onerous nature on a tax payer. It is axiomatic from the plain reading of approval memo that the JCIT is in complete dark on facts while being called upon to grant his clearance....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....er the scheme of the Act. Manifestly, the JCIT, without any consideration of factual and legal position in proposed additions/disallowances and without contents of appraisal report before him or incriminating material collected in search etc. has buckled under statutory compulsion and proceeded to grant a simplicitor approval with caveats and disclaimers. This approach of the JCIT has ipso facto rendered the impugned approval to be a mere ritual or an empty formality to meet the statutory requirement and cannot thus be countenanced in law. 12. The identical issue has been favourably adjudicated in assessee's own case in ITA 3306/Del./2018 order dated 23-08-2021 concerning other AY 2015-16 where co-ordinate bench found total lack of propriety in such statutory approval. There are plethora of decisions of various co-ordinate benches including Sanjay Duggal & ors (ITA 1813/Del/2019 & ors; order dated 19.01.2021 which have also echoed the same view on similar fact situation. 13. The CIT(A) in para 7 of first appellate order has brushed aside the legal objection summarily merely on an inept & indifferent premise that the assessment order makes mention of the approv....