TaxTMI 
TaxTMI 
2025 (6) TMI 479
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.... of mind and being passed in most arbitrary manner without discussing/distinguishing the decisions of Hon'ble jurisdictional High Court and Supreme Court. B) That orders of ld. AO and Ld. First appellate authority respectively passed u/s 143(3) and sec. 250 are both invalid in so far as assessment order was passed without issuing the notice u/s 143(2) of the Act and therefore, order passed by Ld. CIT (A) confirming the action of ld. AO is grossly reverse and patently illegal on face of it. C)That orders of ld. AO and Ld. First appellate authority respectively passed u/s 143(3) and sec. 250 are both invalid in so far as assessment order was passed without mentioning DIN and therefore, order passed by Ld. CIT (A) confirming the action of ld. AO is grossly perverse and patently illegal on face of it. D) That orders of ld. AO and Ld. First appellate authority respectively passed u/s 143(3) and sec. 250 are both invalid in so far as assessment order was passed without taking proper approval as per provision of section 153D of the Act and order passed by Ld. CIT (A) confirming the action of ld. AO ignoring the judgment of jurisdictional High Court cited by appellant and therefore, ....
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....tion 153C of the Act. J) That orders of ld. AO and Ld. First appellate authority respectively passed u/s 143(3) and sec. 250 are both invalid as impugned action u/s 153C is completely without the authority of law and is infirm on multiple count and is jurisdictionally flawed. K) That orders of ld. AO and Ld. First appellate authority respectively passed u/s 143(3) and sec. 250 are both invalid as impugned addition sustained is based on purported material having no evidentiary value in eyes of law." 4. First we take up legal issue raised by the assessee in the grounds of appeal. Before deciding the legal issue in dispute, we may gainfully reproduce the approval u/s. 153D of the Income Tax Act (for short 'the Act'), which read as under:- 5. At the time of hearing, Ld. AR of the assessee filed a Paper Book containing pages 1 to 67 wherein, plethora of case laws have been referred and also relied on the case laws other than the paper book, whereby the legal issue in dispute has been decided in favour of the assessee. However, more particularly, ld. AR drew our attention towards the decisions viz. Hon'ble jurisdictional Allahabad High Court in the case of PCIT Central vs. Siddhart....
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....basis of material available on record and the approval must reflect the application of mind to the facts of the case. The requirement of approval under Section 153D is pre-requisite to pass an order of assessment or re-assessment. Section 153D requires that the Assessing Officer shall obtain prior approval of the Joint Commissioner in respect of "each assessment year" referred to in Clause (b) of sub-section (1) of Section 153A which provides for assessment in case of search under Section 132. Section 153A(1)(a) requires that the assessee on a notice issued to him by the Assessing Officer would be required to furnish the return of income in respect of "each assessment year" falling within six assessment years (and for the relevant assessment year or years), referred to in Clause (b) of sub-section (1) of Section 153A. The proviso to Section 153A further provides for assessment of the total income in respect of each assessment year falling within such six assessment years (and for the relevant assessment year or years). The careful and conjoint reading of Section 153A(1) and Section 153D leave no room for doubt that approval with respect to "each assessment year" is to be obtain....
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.... and Smt. NeetuNayyar. 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 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 extra....
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....roval in the eye of law. Tribunal reproduced the observations made by the Additional CIT while granting approval and came to the conclusion that the same suffered from lack of application of mind. The Tribunal referred to various judgments of the Supreme Court and the High Courts in support of its conclusion that the approval whenever required under the law, must be preceded by application of mind and consideration of relevant factors before the same can be granted. The approval should not be an empty ritual and must be based on consideration of relevant material on record. 5. The learned Counsel for the Revenue submitted that the question of legality of the approval was raised by the assessee for the first time before the Tribunal. He further submitted that the Additional CIT had granted the approval. The Tribunal committed an error in holding that the same is invalid. 6. Having heard the learned Counsel for the both sides and having perused the documents on record, we have no hesitation in upholding the decision of the Tribunal. The Additional CIT while granting an approval for passing the order of assessment, had made following remarks : "To, The DCIT(OSD)1, Mumbai Subject: ....
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....pproval u/s 153D of the Act by expressing discordant note on such mechanical exercise of responsibility placed on designated authority under section 153D of the Act. 17. Hence, vindicated by the factual position as noted in preceding paras, we find considerable force in the arguments advanced by the Ld. the Assessee's Representative on the Additional Ground of Appeal. In our considered opinion the approvals so granted under the shelter of section 153D of the Act does not pass the test of legitimacy. The Assessment orders of various assessment years as a consequence of such inexplicable approval lacks legitimacy. Consequently, the impugned assessments orders in the captioned appeals are non-est and a nullity and hence the same are quashed. 18. In view of prima facie merits found in the legal objections raised in the Addl. Grounds of the Assessee's, we do not consider it expedient to look into the aspects on merits of additions/disallowance as the legal objections on sanction granted under Section 153D of the Act has been answered in favour of the Assessee. Thus the other Grounds raised in the Appeals of the Assessee in both the Appeals have rendered in- fructuous, which do n....