TaxTMI 
TaxTMI 
2025 (1) TMI 970
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....ance before the CIT(A) was because of the reasons beyond the control of the assessee. 3. On the facts and circumstances of the case, the learned CIT (A) has erred, both on facts and in law, in rejecting the contention of the assessee that the assessment order passed under section 143(3) r.w.s. 153A is illegal and bad in law as the same has been passed without having valid jurisdiction. 4. On the facts and circumstances of the case, the learned CIT (A) has erred, both on facts and in law, in rejecting the contention of the assessee that the assessment order passed under section 153A r.w.s. 143(3) is bad and liable to be quashed as the same has been framed consequent to a search which was initiated under the wrong pretext. 5. On the facts and circumstances of the case, the learned CIT (A) has erred, both on facts and in law, in rejecting the contention of the assessee that the assessment order passed under section 153A r.w.s. 143(3) is bad and liable to be quashed as the same has been framed consequent to a search which itself was unlawful and invalid in the eyes of law. 6. 6. On the facts and circumstances of the case, the learned CIT (A) has erre....
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....nd 234C of the Act. 13. That the appellant craves leave to add, amend or alter any of the grounds of appeal." 3. Brief facts of the case are that, pursuant to a search and seizure operation carried out at the various premises of Bajaj Group and its Associates including the Assessee and the Directors and others dated 20/04/2017, an assessment proceeding has been initiated against the Assessee and an assessment order came to be passed on 18/12/2019 u/s 143(3) r.w. Section 153A of the Act by making an addition of Rs. 32,41,000/- u/s 68 of the Income Tax Act, 1961 ('Act' for short). Aggrieved by the assessment order dated 18/12/2019, the Assessee preferred Appeal before the Ld. CIT(A). The Ld. CIT(A) vide order dated 09/11/2022 dismissed the Appeal of the Assessee. Aggrieved by the order of the Ld. CIT(A) dated 09/11/2022, the Assessee preferred the present Appeal on the Grounds mentioned above. 4. Though the Assessee has raised several grounds of Appeal, the Ld. Assessee's Representative restricted his submission only on Ground No. 9 and submitted that, the Additional CIT granted approval u/s 153D of the Act in respect of seven cases vide single letter which compris....
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....nt year" used in the language of Section 153D of the Act. The relevant paragraphs of the said decision are reproduced as under:- "13. It was held therein that if an approval has been granted by the Approving Authority in a mechanical manner without application of mind then the very purpose of obtaining approval under Section 153D of the Act and mandate of the enactment by the legislature will be defeated. For granting approval under Section 153D of the Act, the Approving Authority shall have to apply independent mind to the material on record for "each assessment year" in respect of "each assessee" separately. The words 'each assessment year' used in Section 153D and 153A have been considered to hold that effective and proper meaning has to be given so that underlying legislative intent as per scheme of assessment of Section 153A to 153D is fulfilled. It was held that the "approval" as contemplated under 153D of the Act, This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 20/05/2024 at 21:34:51 requires the a....
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....s that it meets the requirement of the law. As explained in the above cases, the mere repeating of the words of the statute, or mere "rubber stamping" of the letter seeking sanction by using similar words like "seen" or "approved" will not satisfy the requirement of the law. This is where the Technical Manual of Office Procedure becomes important. Although, it was in the context of section 158BG of the Act, it would equally apply to section 153D of the Act. There are three or four requirements that are mandated therein, (i) the Assessing Officer should submit the draft assessment order "well in time". Here it was submitted just two days prior to the deadline thereby putting the approving authority under great pressure and not giving him sufficient time to apply his mind ; (ii) the final approval must be in writing ; (iii) the fact that approval has been obtained, should be mentioned in the body of the assessment order." [Emphasis supplied] 14. During the course of arguments, learned counsel for the assessee apprised this Court that the Special Leave Petition preferred by the Revenue against the decision in the case of Serajuddin (supra), came to be dismis....
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....43 cases on a single day is the subject matter of dispute before us. Further, section 153D provides that approval has to be granted for each of the assessment year whereas, in the instant case, the ld. Addl. CIT has granted a single approval for all assessment years put together." 17. Notably, the order of approval dated 30.12.2020 which was produced before us by the learned counsel for the assessee clearly signifies that a single approval has been granted for AYs 2011-12 to 2017-18 in the case of the assessee. The said order also fails to make any mention of the fact that the draft assessment orders were perused at all, much less perusal of the same with an independent application of mind. Also, we cannot lose sight of the fact that in the instant case, the concerned authority has granted approval for 43 cases in a single day which is evident from the findings of the ITAT, succinctly encapsulated in the order extracted above." 9. The Hon'ble Orissa High Court in the case of ACIT vs Serajuddin & Co. 454 ITR 312 (Orissa) had an occasion to examine substantial question of law on the propriety of approval granted under s. 153D of the Act. The Hon'ble High Court made wide r....
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....e to time the approval u/s 153D of the Act is granted in respect of seven cases. The approval dated accorded u/s 153D of the Act is bearing the printed date of 17/12/2019 and hand written date of '18/12/2019' and the same has been signed on 18/12/2019. There is not even mentioning of any draft assessment order or the assessment records or the seized materials in the said approval letter. Such mechanical approval cannot be sustainable in law in the light of judicial dicta available. The approval memo is totally silent on the issues involved and has granted omnibus approval without any thoughtful process being discernible. A single approval u/s 153D has been accorded comprising out of seven Assessment Years. Applying the ratio of judgements delivered as noted above, the assessment order based on ritualistic approval stands vitiated and thus quashed by allowing Ground No. 9 of appeal of the Assessee. 12. Since, we have quashed the Assessment Order on the ground of erroneous approval accorded u/s 153D of the Act by allowing the Ground No. 9, we do not consider it necessary to address on other legal and factual contentions raised in the other grounds of Appeal of the Assessee. 13.....