TaxTMI 
TaxTMI 
2024 (12) TMI 858
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.... under appeal the facts germinate from same search and seizure action, the facts are narrated from appeal of the assessee for AY 2016-17; hence, the said appeal is taken up as a lead case. ITA No. 1986/Del/2022 for AY 2016-17 3. Shri Anil Jain, appearing on behalf of the assessee submitted that although, the assessee in grounds of appeal has raised multiple grounds assailing jurisdictional issues and additions on merits, at this stage he would be pressing only ground no. 2 challenging validity of approval granted by the Addl. CIT u/s. 153D of the Income Tax Act, 1961(hereinafter referred to as 'the Act'). The ld. Counsel for the assessee narrating facts of the case submitted that the search and seizure action u/s. 132 and survey operation u/s. 133A of the Act was carried out by the Investigation Wing of the Department on 18.11.2016 on the assessee and Neetu Nayyar. The Assessing Officer (AO) completed the assessment on 30.12.2018 u/s. 153A r.w.s. 143(3) of the Act and on the same date the AO forwarded the draft assessment order for approval to Addl. CIT. The Addl. CIT on 30.12.2018 itself granted approval u/s. 153D of the Act in a mechanical manner without any application....
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....2016-17 & 2017-18 decided on 22.11.2013, wherein the Tribunal after considering the same approval of Addl.CIT dated 30.12.2018 quashed the assessment orders following order of Tribunal in assessee' case in ITA No. 1282 to 1285/Del/2020 (supra). The ld. Counsel asserted that once approval granted by the Addl.CIT dated 30.12.2018 has been held to be unsustainable in the eyes of law being mechanical and without application of mind, the same approval cannot be held valid for other assessment years. 4. Per contra, Ms. Nimisha Singh, representing the department strongly supported the impugned order and prayed for dismissing ground no. 2 of appeal by the assessee. Referring to findings of the CIT(A) in para 8.1.2 of the impugned order, she submitted that the CIT(A) has categorically recorded the fact that the Addl.CIT was involved in framing of the assessment order in the case of Nayyar group at all stages. The questioner issued in Nayyar group of cases by the AO was revised by the Addl.CIT and specific questionnaire based on the seized material and the appraisal report was prepared. The said specific questionnaire was thereafter approved by the Addl.CIT vide letter dated 05.10.2018.....
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....2. That on the facts and circumstances of the case and the provisions of the law, the ld. CIT(A) has failed to appreciate that the approval by the Addl.CIT u/s. 153D is illegal, bad in law and without application of mind and consequently the assessment order passed requires to be quashed." 7. The assessee has challenged the validity of approval granted by Addl.CIT dated 30.12.2018. Before proceeding further it is relevant to refer to the said approval. The same is extracted herein below for ready reference:- 8. From a bare perusal of the aforesaid approval it is not emanating that the Addl.CIT either in the past or even when proposed assessment order was forwarded by the Assessing Officer to Addl.CIT has examined the same. The said approval is a combined approval for AY 2011-12 to 2017-18 in the case of assessee and Neetu Nayyar. The co-ordinate Bench in assessee's own case while adjudicating appeal of the assessee in ITA no. 1282 to 1285/Del/2020 and ITA No. 1078/Del/2021 for AYs 2011-12 to 2015-16, respectively vide order dated 26.07.2023 after considering the same very approval and placing reliance on the decisions rendered in the case of M/s Serajuddin & Co. (supra), PCIT....
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...., if any, are also disposed of. 10. The assessee has also placed reliance on the order of Tribunal in the case of Neetu Nayyar in ITA no. 1988 & 1989/Del/2022 for AY 2016-17 & 2017-18, respectively. The co-ordinate Bench vide composite order dated 22.11.2013 quashed assessment following order in the case of assessee in ITA no. 1282 to 1285/Del/2020 for AY 2011-12 to 2014-15 (supra). 11. The Revenue before us, has vehemently placed reliance on the findings of the CIT(A) in para 8.1.2 of the impugned order to contend that the Addl.CIT was throughout involved in assessment proceedings and was well aware of the facts right from the beginning. If that be the case, we fail to understand that as to what prevented the Addl.CIT in giving reasons for according approval u/s. 153D of the Act. In identical set of facts in the preceding assessment years the coordinate Bench of the Tribunal in assessee's own case for AY 2011-12 to 2015-16 and in the case of Neetu Nayyar for AY 2016-17 & 2017-18 has quashed the assessment order holding approval u/s. 153D by the Addl.CIT mechanical and without application of mind. The findings of the Tribunal have been further upheld by the Hon'ble High C....