TaxTMI 
TaxTMI 
TaxTMI 
2026 (3) TMI 170
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....53(A)of the Income Tax Act, 1961 (hereinafter referred to as 'the Act') passed by the Deputy Commissioner of Income-Tax, Central Circle-03, New Delhi for AY: 2017-18. 2. At the time of hearing ld. Counsel has contended that assessee has raised ground No.3 whereby the impugned order u/s. 153A of the Act is alleged to be vitiated as the approval u/s 153D of the Act is not granted in accordance with law. Relying the copy of approval dated 26.09.2021 of which a typed copy was also provided separately, Ld. Counsel submitted that the consolidated approval for multiple years has been granted. 3. Ld. DR has countered the same by submitting that, it is merely an administrative function discharges by the competent authority u/s. 153D of the Act....
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.... Officer had examined a various issues in the relevant assessment years for which approval was sought including the fact that in AY 2014-15 in the hands of assessee there is a protective addition while substantive additions were in hands of Dinesh Tyagi. Similarly, in AY 2016-17, 2017-18 also there were protective additions. In AY 2015-16 there were disallowance of expenses u/s. 44AD. Similar disallowance was in AY 2016-17 and then there was addition of agriculture income in AY 2016-17. In AY 2017-18 there was an issue of cash deposit during demonetization apart from issue of disallowances of expenses and agriculture income. Similarly, in AY 2018-19 there was disallowance u/s 56(1) followed by similar disallowance in AY 2019-20. Thus, in th....
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.... 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 i....
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....the Orissa High Court in the case of Asst. CIT v. Serajuddin and Co. [2023 SCC OnLineOri 992] to understand the exposition of law on the issue at hand. Paragraph no.22 of the said decision reads as under:- "22. As rightly pointed out by learned counsel for the assessee there is not even a token mention of the draft orders having been perused by the Additional Commissioner of Income-tax. The letter simply grants an approval. In other words, even the bare minimum requirement of the approving authority having to indicate what the thought process involved was is missing in the aforementioned approval order. While elaborate reasons need not be given, there has to be some indication that the approving authority has examined the draft ord....
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....ect 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 application of mind. 16. In the present case, the ITAT, while specifically noting that the approval was granted on the same day when the draft assessment orders were sent, has observed as under:- "10. We have gone through the approval granted by the ld. Addl. CIT on 30.12.2018 u/s 153D of the Act which is enclosed at page 36 of the paper book of the assessee. The said letter clearly states that a letter dated 30.12.2018 was filed by the ld. AO before the ld. Addl. CIT seeking approval of draft assessmen....