TaxTMI 
TaxTMI 
2025 (6) TMI 479
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....to be quashed/set aside for total want of applications 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 t....
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....ount has already been returned during the ordinary and normal course much prior to the commencement of proceedings under section 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 particula....
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....has been examined by the Assessing Authority before preparing the draft assessment order. It is trite in law that the approval must be granted only on the 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). ....
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.... 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. 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 si....
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....not complied with. 4. This was not a case where no approval was granted at all. However, the Tribunal was of the opinion that the approval granted by the Additional Commissioner of Income Tax was without application of mind and, therefore, not a valid approval 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....
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....dismissed the Appeal filed by the Department of Revenue against the order dated 15/03/2023 in ITA No. 43/2022 passed by the Hon'ble High Court of Orissa at Cuttack, wherein the Hon'ble High Court had quashed the Assessment Order on the ground of inadequacy in procedure adopted for issuing approval 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 ....
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....g initiated under Section 153C r.w.s 153A of the Act in the absence of a valid approval granted by the Learned Additional Commissioner of Income Tax, Central Range-7, New Delhi. 12. In the result, appeal of the assessee is allowed." 11. Respectfully following the above precedents, we quash the entire proceedings initiated under section 153C r.w.s. 143(3) of the Act in the absence of a valid approval granted by the Ld. JCIT, Central Range, Meerut. 12. We are refrained from adjudicating the other grounds of appeal and at this stage, we keep the other grounds of appeal open. 13. In the result, the appeal being ITA No.4810/Del/2024 for assessment year 2015-16 stands partly allowed. 14. With regard to appeal for AY 2016-17 is concerned, since the facts are exactly similar to AY 2015-16 our above findings in AY 2015-16 are applicable mutatis mutandis in AY 2016-17. Accordingly, the appeal being ITA No.4690/Del/2024 for AY 2016-17 filed by the assessee is also partly allowed. 6. To sum up : both the appeals filed by the assessee are partly allowed. Order pronounced in the open court on this 21st day of May, 2025. ============= Document 1 Time Barring Limita....