TaxTMI 
TaxTMI 
2025 (1) TMI 1581
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....premises of Bajaj Group and its associates including the assessee and the directors and others on 20.04.2017. Due to centralization, order under section 127 of the Act was passed by Pr. CIT-22, New Delhi vide order dated 02.11.2018 jurisdiction was transferred to the Circle. Notice under section 143(2) of the Act was issued on 11.09.2019. Vide letter dated 05.10.2019, assessee filed objection challenging the jurisdiction of the AO and validation of notice under section 143(2) of the Act. Vide office letter dated 10.10.2019, objections were disposed off and assessee was informed that the jurisdiction of the case was legally assumed by the AO. Notice under section 142(1) of the Act along with detailed questionnaire was issued through ITBA portal on 18.10.2019. On 04.11.2019, the assessee filed a letter and submitted that notices were for seven years, were comprehensively voluminous, festival of Diwali was celebrated starting from 25.10.2019 along with the last dates of ROC filings and hence, all professionals were very busy and sought time to respond. Vide letter dated 11.11.2019, the assessee again requested for long adjournment. Vide letter dated 18.11.2019, learned AO intimated th....
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....illegal and liable to be quashed as the same has been passed violating the provisions of section 124 of the Income Tax Act. 6. 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 proceedings initiated under section 153A against the appellant and the assessment framed under section 153A r.w.s. 143(3) are in violation of the statutory conditions of the Act and the procedure prescribed under the law and as such the same is bad in the eye of law and liable to be quashed. 7. 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 learned AO has erred in making the addition in order passed u/s 153A r.w.s 143(3) of the Act, without any incriminating material having been found during the course of search. 8.(i) 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 proceedings initiated under section 153A against the appellant and the consequent reassessment framed unde....
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....granted approval under section 153D of the Act in respect of seven cases vide single letter which comprising of seven assessment years. Approval under section 153D of the Act was without examination of the assessment record, seized material and other assessment records. Moreover, the request and approval are of same date. A Co-ordinate Bench in the case of Inder Chand Bajaj vs. DCIT in ITA No. 2873/Del/2022 for A.Y. 2018-19 dated 17.01.2025 had decided in favour of appellant/assessee. 6. Learned Departmental Representative for the Revenue submitted that approval under section 153D of the Act is the internal correspondence between AO and DCIT/Addl. CIT, the CIT has examined the assessment records, draft assessment order and applying his mind granted approval. The Tribunal cannot examine the legality of the said correspondence. 7. From examination of record in light of aforesaid rival contentions, it is crystal clear that approval accorded under section 153D of the Act. The copies of request letter for approval and approval accorded under section 153D of the Act both dated 23.12.2019 are as under: 8. The Addl. CIT has granted approval under section 153D of the Act in re....
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....ut 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 approving authority, i.e. Joint Commissioner to verify the issues raised by the Assessing Officer in the draft assessment order and apply his mind to ascertain as to whether the required procedure has been followed by the Assessing Officer or not in framin....
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....ent 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 dismissed by the Supreme Court vide order dated 28.11.2023 in SLP (C) Diary no. 44989/2023. 15. A similar view was taken by this Court in the case of Anuj Bansal (supra), whereby, it was reiterated that the exercise of powers under Section 153D cannot be done mec....
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.... 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 ranging observations towards the manner and legality of approval under s. 153D of the Act by observing that the approval under s. 153D of the Act being mandatory, while elaborate reasons need not be given, there has to be some indication that approving authorit....
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....019. 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. In the result, the appeal of the Assessee is allowed. 10. In view of above material facts and the judicial view of the Coordinate Bench as per law of precedent, the assessment order on ground of erroneous approval accorded....
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.... Income Tax Act, 1961 - Regarding. Please refer to your office letter F.No. DCIT/CC-32/153D/2019-20/ seeking approval u/s 153D of the Income Tax Act, 1961. dated 23.12.2019 2. (On the basis of discussion held from time to time the approval u/s 153D of the Income Tax Act. 1961 is granted in respect of following cases :- S. No. Name of the assessee PAN Under section A. Y. 1. Sh. Ram Narayan Bajaj ACPPB8385E 153A r.w.s. 143(3) 2012-13 2. Sh. Ram Narayan Bajaj ACPPB8385E 153A r.w.s. 143(3) 2013-14 3. Sh. Ram Narayan Bajaj ACPPB8385E 153A r.w.s. 143(3) 2014-15 4 Sh. Ram Narayan Bajaj ACPPB8385E 143(3) r.w.s. 153A 2018-19 5. Smt. Pushpa Devi Bajaj ABFPB2234D 153A r.w.s. 143(3) 2014-15 6. M/s RNB Leasing and Financial Services AAJFR5528H 153A r.w.s. 143(3) 2008-09 A. Y. Assessment records are returned. Yours Faithfully, (Vinod Johri) Addl. Commissioner of Income Tax, Central Range - 8, New Delhi. Document 2 कारà¥à¤¯à¤¾à¤²à¤¯ अपर आयकर आयà¥à¤•à¥à¤¤, केनà¥à¤¦à¥à¤°à¥€à¤¯ रेंज-8. कà¤....