AI OCR 
TaxTMI 
TaxTMI 
TaxTMI 
2025 (5) TMI 1782
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.... passed in another family member's case viz. Prateek Nagpal vs. ACIT of the present assessee, decided in ITA No. 466/Del/2022 (AY 2012-13), ITA No. 521/Del/2022 (AY 2013-14) & ITA no. 522/Del/2022 (AY 2014-15), wherein, exactly on similar facts and circumstances of the case as well common approval u/s. 153D of the Income Tax Act dated 30.12.2019, the Tribunal has quashed the entire proceedings initiated under section 153C r.w.s. 153A of the Act in the absence of a valid approval granted by the ACIT, Central Range-4, New Delhi. Ld. AR has filed a small paper book before us, attaching copy of approval u/s. 153D of the Act, copy of Affidavit of the appellant, and copy of decision of the Delhi Tribunal dated 10.01.2025 in the case of Sh. Prateek Nagpal vs. ACIT. Hence, he requested to follow the aforesaid precedent and also allow the instant appeal of the assessee. Ld. DR did not controvert the aforesaid contention of the assessee. 3. We have heard both the parties and perused the records, especially, the copy of approval u/s. 153D of the Act dated 30.12.2019 granted in total 28 assessee's cases wherein, the present assessee's name is mentioned at serial no. 2 and also perused the T....
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.... ld. AR in the paper book. 12. We find that ITAT Delhi Bench in the case of M/s MilleniumVinimay (P) Ltd. vs. ACIT, (supra) has dealt the similar legal issue and decided the same in favour of the assessee. The relevant findings of the Coordinate Bench are reproduced as under:- "15. There are several decisions, which supports the view that approval granted by the superior authority in mechanical manner defeats the very purpose of obtaining approval u/s 153D of the Act. Such perfunctory approval has no legal sanctity in the eyes of the law. The decision of the co-ordinate bench in Shreelekha Damani vs. DCIT 173 TTJ 332(Mum.) which has been approved by jurisdictional High Court subsequently, reported in 307 CTR 218 affirms the plea of the Assessee, wherein the Hon'ble Bombay High Court held as under:- "1. This appeal is filed by the Revenue challenging the judgment of Income Tax Appellate Tribunal ("the Tribunal" for short) dated 19th August, 2015. 2. Following question was argued before us for our consideration: "Whether on the facts and circumstances of the case and in law, the Tribunal was justified in holding that there was no '....
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....nalyze the issue of draft order on merit. Therefore, the draft order is being approved as it is submitted. Approval to the above said draft order is granted u/s 153D of the I. T. Act, 1961." 7. In plain terms, the Additional CIT recorded that the draft order for approval under Section 153D of the Act was submitted only on 31st December, 2010. Hence, there was not enough time left to analyze the issues of draft order on merit. Therefore, the order was approved as it was submitted. Clearly, therefore, the Additional CIT for want of time could not examine the issues arising out of the draft order. His action of granting the approval was thus, a mere mechanical exercise accepting the draft order as it is without any independent application of mind on his part. The Tribunal is, therefore, perfectly justified in coming to the conclusion that the approval was invalid in eye of law. We are conscious that the statute does not provide for any format in which the approval must be granted or the approval granted must be recorded. Nevertheless, when the Additional CIT while granting the approval recorded that he did not have enough time to analyze the issues arising out of the draft or....
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....ns that no order of assessment or reassessment shall be made by an Assessment Officer below the rank of Joint Commissioner in respect of each assessment year referred to in Clause (b) of Sub Section (1) of Section 153A of the Act or the assessment year referred to in Clause (b) of Sub Section 153B of the Act except the prior approval of the Joint Commissioner. It further appears from the approval dated 08.06.2018 that the same was a common and composite order whereas the Addl. Commissioner is required to verify and approve that each of assessment year is complied with as well as procedural laid down under the Act. Such fact clearly reveals non-application of mind on the part of the Learned Addl. Commissioner of Income Tax, Central Range-7, New Delhi. Thus granting approval for all the common years instead of approval under Section 153B for each assessment year separately de horse the rules. The said approval is found to have been given in a mechanical and routine manner. We find that the order issuing authority has not discharged its statutory duties cast upon him even by assigning cogent reasons in respect of the issues involved in the matter. Thus granting approval in th....
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....e case of the assessee and for seven assessment years in the case of Smt. Neetu Nayyar. It is also pertinent in this regard to refer to pages 68 and 69 of the paper book which contains information obtained by Smt. Neetu Nayyar from Central Public Information Officer who is none other than the ld. Addl. Commissioner of Income-tax, Central Range-S, New Delhi, under Right to Information Act, wherein, it reveals that the ld. Addl. CIT had granted approval for 43 cases on 30.12.2018 itself. This fact is not in dispute before us. Of these 43 cases, as evident from page 36 of the paper book which contains the approval u/s 153D, 14 cases pertained to the assessee herein and Smt. Neetu Nayyar. The remaining cases may belong to some other assessee's, which information is not available before us. In any event, whether it is humanly possible for an approving authority like ld. Addl. CIT to grant judicious approval u/s 153D of the Act for 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....
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....ew Delhi dated 30.12.2019 and accordingly, allow the legal ground raised by the assessee. 5. In the result, the appeal filed by the assessee stands allowed. Order pronounced on 16.04.2025. ============= Document 1 Office of the Addl. Commissioner of Income-tax Central Range-4, New Delhi Room No-249, 2nd Floor, ARA Centre, E-2, Jhandewalan Extension, New Delhi-55 Telephone No. 23593272 Dated: 30.12.2019 F. No. Addl.CIT/CR-4/ Approval 153D/2019-20/1247 To The Asstt. Commissioner of Income Tax CC-14, New Delhi. Sub: - Approval u/s 153D of the Income Tax Act, 1961 - Regarding- Please refer to the subject cited above. In this regard, draft assessment order(s) in the below mentioned case(s) submitted to this office, vide F. No. ACIT/CC-14/Nagpal group of cases/2019- 20/1026 dated 30.12.2019 seeking approval u/s 153D of the I T Act, 1961: S. No. Name of the Assessee PAN Assessment Year Draft order u/s 1. Sh. Anuj Nagpal ACKPN0439N 2012-13 to 2018-19 153A/153C/143(3) 2. Sh. Anu Nagpal ACTPN4363Q 2012-13 to 2018-19 153A/153C/143(3) 3. Sh. Prateek Nagpal AMQPN9019G 2012-13 to 2018-19 153A/153C/143(3) 4. M/s Amani Hospitality Pvt. Ltd. AAN....