2024 (11) TMI 83

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....l dated 31.12.2019 passed by the ACIT, Central Circle-15, New Delhi (hereinafter referred to as 'AO') under Section 153A of the Income Tax Act, 1961 (the Act) concerning Assessment Years 2016-17, 2017-18 and 2018-19. 2. As per the grounds of appeal, the assessee has assailed the additions made by the Assessing Officer under Section 153A of the Act on merits of the additions and disallowances. The assessee has also simultaneously alleged that the so called approval granted by the superior authority under Section 153D of the Act is non-est approval being a mechanical and perfunctory approval. 3. When the matter was called for hearing, the ld. Counsel adverted to approval dated 29.12.2019 granted by the Addl. CIT, Central Range-4, New De....

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....ng different issues in few hours. Such stereotyped approval is a pointer to the factum of non-application of mind. 3.3 The ld. Counsel next pointed out that non-application of mind and approval of symbolic nature to the draft Assessment Order is also self-evident. Despite the fact that even the assessed income has not been measured and quantified in the Assessment Order under challenge, the approval has been granted. The ld. Counsel submitted that the approval under Section 153D of the Act is wholly unsustainable in law and consequently the Assessment Order based on such non-est approval requires to be quashed at the threshold. 4. The ld. CIT-DR for the Revenue, on the other hand, defended the approval granted under Section 153D of th....

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....hat impugned Assessment Orders were passed under Section 153A r.w.s. 143(3) of the Act pursuant to search carried out under Section 132 of the Act. S. 153D provides for approval of the JCIT before passing order under s. 153A of the Act. The prior approval under Section 153D of the Act by the superior authority acts as a statutory safeguard against arbitrary action of the Assessing Officer, if any. In sync with the object and purpose of such safeguards provided under the Act, the approving authority is necessarily required to objectively evaluate the contents of such proposed Assessment Order with utmost care and circumspection on various issues so as to derive his/her informed satisfaction that the proposed action of the AO is in conformity....

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.... to meet the requirement of law. 8. We find potency in the contentions raised on behalf of the assessee. The non-application of mind is glaringly demonstrable having regard to the peculiar facts of the case. Admittedly, combined and consolidated approval has been granted to large number of cases involving different Assessment Years and that too before the end of the next day of the requisition from AO seeking approval. A bare glance at the approval so accorded makes it evident that such approval is generic, listless and accorded in a blanket manner without reference to any issue in respect of any of the Assessment years involved in the case of any of the assessee covered in the consolidated approval. Apparently, the approval has been gra....