TaxTMI 
TaxTMI 
2025 (11) TMI 994
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....dismissed the Appeals of the Assessee. As against the orders of the Ld. CIT(A), the Assessee filed the captioned Appeals. 3. The Ld. Counsel for the Assessee addressing on the Ground No. 11 in ITA No. 3536/Del/2025 and Ground No. 8 in ITA No. 3537 and 3538/Del/2025, submitted that the approval accorded u/s 153D of the Act is a mechanical and arbitrary approval without their being any application of mind and also without satisfying the statutory preconditions of the Act as such the assessment so framed is null and void. The Ld. Counsel further submitted that approval issued u/s 153D of the Act does not mention any seized document having been perused and a single approval has been granted for four Assessment Years pertaining to Assessee. The Ld. Counsel relying on the Judgment of the Jurisdictional High court in the case of Pr. Commissioner of Income Tax Vs. Shiv Kumar Nayyar reported in 163 taxmann.com9 dated 15/05/2024 in ITA No. 285/2024 (CMP No. 28994/2024) and other Judicial pronouncements, sought for allowing the Appeal and prayed for quashing the assessment order. 4. Per contra, the Ld. Departmental Representative submitted that the draft assessment orders have been peru....
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....ecision are reproduced as under:- "13. It was held therein that if an approval has been granted by the Approving Authority in a mechanical manner without 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 Office....
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....f the words of the statute, or mere "rubber stamping" of the letter seeking sanction by using similar words like "seen" or "approved" will not satisfy the requirement 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....
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....s 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 extracted above." 9. Significantly, 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 Section 153D of the Act. The Orissa High Court made wide ranging observations towards the manner and legality of approval under s. 153D o....
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....ear 2015-16, 2016-17 and 2017-18 based on ritualistic approval stands vitiated and thus quashed by allowing Ground No. 11 in ITA No. 3536/Del/2025 and Ground No. 8 in ITA No. 3537 and 3538/Del/2025 respectively. 12. Since, we have quashed the Assessment Order on the ground of erroneous approval accorded u/s 153D of the Act, 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 in ITA No. 3536/Del/2025, ITA No. 3537 and 3538/Del/2025 are allowed. Order pronounced in the open court on 28th October, 2025 ============= Document 1 OFFICE OF THE ADDL. COMMISSIONER OF INCOME TAX, CENTRAL RANGE-4, NEW DELHI Room No. 249, 2ª Floor, ARA Centre, E-2, Jhandewalan Extension, New Delhi - 110055 Phone No. 011-23593272: E-Mail I.D .: [email protected] F.No. Addl. CIT/C.R-4/Approval u/s 153D/2021-22/11/22 Date: 28.12.2021 Tes Assistant Commissioner of Income-tax, Central Circle -14, New Delhi Sub: Approval w's 153D of the LT. Act, 1961 in the case of THE WINE CONNECTION (PAN: AAIFT6798A) for the A.Ys. 2014-15 to 2017-18- reg. Pl....