TaxTMI 
TaxTMI 
2025 (1) TMI 1581
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....ncluding 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 the assessee for assessment proceedings were g....
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....isions 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 under section 153A r.w.s 143(3) are in violation of mandatory provisions of Section 153D of the Act a....
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....ection 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 respect of seven cases by a single Letter which included multiple assessment years on the same day. There is no reference to examination of any assessment recor....
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....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 framing the assessment. The approval, thus, cannot be a mere formality and, in any case, cannot be a mechanical exercise of power. *** 19. The careful and conjoint reading of Section 153A(1) and Se....
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....nts 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 mechanically. Thus, the salient aspect which emerges from the abovementioned decisions is that grant of approval under Section 153D of the Act cannot be merely a ritualistic formality or rubber stamping by the authority, rather it must reflect an appropriate....
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.... 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 authority has examined draft orders and finds that it meets the requirement of law. The approving authority is expected to indicate his thought process while granting approval, held that it is not correct on the part of the Revenue to contend that the approval itself is not justifiable. Where....