TaxTMI 
TaxTMI 
2025 (4) TMI 1887
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....essment proceedings per se. As this issue goes to the root of the matter and all facts relevant for adjudication are already on record, we admit the additional grounds in the light of decision of Hon'ble Supreme Court in the case of NTPC Ltd reported in 229 ITR 383(SC). 3. The Learned AR before us submitted that the Learned Additional CIT granted single approval for all the Assessment Years 2006-07 to 2012-13 in the case of assessee, Sumit Verma, Poonam Verma, Ritu Verma and Ganpati Builders on 24.3.2014. He also placed on record the decision of Co-ordinate Bench of this Tribunal in assessee's own case in ITA No. 1809/Del/2017 dated 21.2.2025 for Assessment Year 2012-13, wherein the search assessment was quashed for granting single consolidated approval for all the assessment years under section 153D of the Act is no approval in the eyes of law. The relevant operative portion of the said Tribunal order in assessee's own case is reproduced below:- "4. It was submitted by the Id. AR that the assessee is challenging the assessment order on the technical ground in respect of approval granted u/s.153D of the Act by the Addl. CIT. It was the submission that the approval grant....
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....nted clearly shows that the same is given in mechanical manner where ld. Addl. CIT granted the approval for various assessment years and for five different assessee's was granted by a single order. He placed reliance on the judgement of Hon'ble Jurisdictional High Court in the case of PCIT Vs. Shiv Kumar Nayyar in ITA No. 285/2024 wherein the Hon'ble jurisdictional high court vide order dt. 15.05.24 in para 09-18 has held as follows: 9. We have heard the learned counsels appearing on behalf of the parties and perused the record. 10. Before embarking upon the analysis of the factual scenario of the instant appeal, we deem it apposite to examine the underlying intent of the relevant provision of the Act Le., Section 153D, which is culled out as under: "153D. Prior approval necessary for assessment in cases or requisition.-No order of assessment or reassessment shall be passed by an Assessing Officer below the rank of Joint Commissioner in respect of each assessment year referred to in clause (b) of (sub-section (1) of Section 153(A) or the assessment year referred to in clause (b) of subsection (1) of Section 153B, except with the prior approval....
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....sessing Officer on the draft assessment order before passing the assessment order under Section 153A." [Emphasis supplied] 12. It is observed that the Court in the case of Sapna Gupta (supra) refused to interdict the order of the ITAT, which had held that the approval under Section 153D of the Act therein was granted without any independent application of mind. The Court took a view that the approving authority had wielded the power to accord approval mechanically, inasmuch as, it was humanly impossible for the said authority to have perused and appraised the records of 85 cases in a single day, It was explicitly held that the authority granting approval has to apply its mind for each assessment year for each assessee separately 13. Reliance can also be placed upon the decision of the Orissa High Court in the case of Asst. CIT v. Serajuddin and Co. (2023 BCC Online Ori 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....
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....h 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 Id. AO before the Id. Addl. CIT seeking approval of draft assessment order u/s 153D of the Act. The Id. Addl. CIT has accorded approval for the said draft assessment orders on the very same day i.e., on 30.12.2018 for seven assessment years in the case of the assessee and for seven assessment years in the case of Smt. Neetu Nayyar. It is also pertinent in this regard to refer to pages 68 and 69 of the paper book which contains information obtained by Smt. Neetu Nayyar from Central Public Information Officer who is none other than the ld. Addl. Commissioner of Income-tax, Central Range-S, New Delhi, under Right to Information Act, wherein, it reveals that the Id. Addl. CIT had granted approval for 43 cases on 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. Neetu Nayyar. The remaining cases may belong to some other assessees, which information is not available before us. In any eve....
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....approval being vitiated consequently the assessment order is required to be annulled. 6. In reply, Id. CIT-DR vehemently supported the order of the lower authorities and drew our attention to the approval accorded by the Id. Addl. CIT. It was the submission that the impugned year was the search year. It was the submission that the Addl. CIT has gone through the assessment records available before him in the case. It was the submission that the Addl. JCIT has applied his mind before making the approval and the same is liable to be upheld. 7 We have considered the rival submissions. In the instant case from the perusal of the approval it is seen that the approval was granted conditionally with certain directions. The approval so given has been reproduced herein above. Another aspect which needs to be considered is that the AO in the instant case is at Dehradun and the Addl. CIT who has granted approval is form Central Range, Meerut thus for obtaining the approval entire records needs to be carried to Meerut from Dehradun and the Addl. CIT has to examine all the material including the assessment folders, appraisal report and seized material before granting the approv....