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TMI Blog2024 (6) TMI 336X X X X Extracts X X X X X X X X Extracts X X X X ..... nted a single approval for all assessment years put together. Similar issue has been addressed in the case of PCIT vs. Anju Bansal [ 2023 (7) TMI 1214 - DELHI HIGH COURT] wherein, under similar circumstances, it is held that statutory approval given by a quasi judicial authority without due application of mind as contemplated in section 153D of the Act would be fatal to the entire search assessment proceedings. Thus no hesitation in holding that the approval u/s 153D of the Act has been granted by the ld. JCIT in the instant case before us in a mechanical manner without due application of mind, thereby making the approval proceedings by a high ranking authority, an empty ritual. Decided in favour of assessee. - Shri M. Balaganesh, Accountant Member And Shri Vimal Kumar, Judicial Member For the Assessee : Shri Neeraj Mangla, CA For the Revenue : Ms. Anu Krishna Aggarwal, CIT DR ORDER PER M. BALAGANESH, A. M.: 1. The appeals in ITA Nos.860 to 863/Del/2021 for AYs 2012-13 and 2016-17 to 2018-19, arise out of the order of the Commissioner of Income Tax (Appeals)24, New Delhi [hereinafter referred to as ld. CIT(A) , in short] dated 25.06.2021 for AY 2012-13, 30.06.2021 for AY 2016-17, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tating that the approval granted by the ld Joint Commissioner of Income Tax u/s 153D of the Act in the instant case is mechanical in nature, which makes the entire search assessments framed as void ab initio. For the sake of convenience, the additional grounds raised by the assessee are reproduced below:- a) On the facts and Circumstances of the case and on the basis of information obtained under RTI dated 24.06.2020, the order of AO is void ab initio as the same has been passed in pursuance to a consolidated approval under 153D, which approval is not in accordance with the provisions of section 153D and hence bad in law. b) On the facts and under the circumstances of the case the approval u/s 153D granted by JCIT is a mechanical approval and hence the assessment framed is void ab initio. 5. These additional grounds go to the root of the matter and all the facts relevant for its adjudication are already on record. Hence, in view of the decision of the Hon'ble Supreme Court in the case of NTPC Ltd reported in 229 ITR 383 (SC), these additional grounds are hereby admitted and first taken up for the purpose of adjudication. 6. We have heard the rival submissions and perused the ma ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Order dated Additions made Assessed income 2012-13 153A 31.12.2019 18,22,000 35,52,550 2016-17 153A 31/12/2019 2,23,59,360 2,39,75,790 2017-18 153A 31/12/2019 8,82,30,197 8,86,43,667 2018-19 143(3) 31/12/2019 13,27,16,773 13,28,66,930 11. These assessments were framed after obtaining the approval from the Ld. Joint Commissioner Of Income Tax, Central Range-2, New Delhi (herein after referred to JCIT) on 30.12.2019 in terms of section 153D of the Act. 12. Later a rectification order u/s 154 of the Act was passed by the ld AO for all these assessment years as under:- AY Order passed u/s Order dated Additions made Assessed income 2012-13 154 23/12/2020 1,40,36,524 1,57,67,074 2016-17 154 17/07/2020 2,17,45,000 2,34,61,430 2017-18 154 17/07/2020 3,15,22,053 3,19,35,523 2018-19 154 17/07/2020 1,60,07,645 1,61,57,775 13. We find that the ld AO in para 2 of his rectification order had pointed out that there has been numerical mistakes in regard to the additions made u/s 69A and 69C of the Act while passing the assessment orders and that the numerical mistakes had occurred due to consideration of wrong table of proposed addition u/s 69A and 69C of the Act of some other assessee. The ld AR ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s 153D of the Act is that the ld JCIT is required to verify the issues raised by the ld AO in the draft assessment order, apply his mind and ascertain whether the entire facts have been appreciated properly by the ld AO together with the supporting evidences. The said approval proceeding is a quasi judicial function to be performed by the ld JCIT based on sound reasoning on due examination of the seized documents, replies filed by the assessee and the draft assessment order of the ld AO. It is highly impossible for the Ld JCIT to grant approval to all the assessment orders on the very same day on receipt of draft assessment orders for various assessment years comprising various issues. Accordingly, the ld AR submitted that the ld JCIT had granted approval by devoting very few minutes for each case in a mechanical manner u/s 153D of the Act without due application of mind by granting single approval for all the assessment years together. Accordingly, he pleaded that this type of approval cannot be treated as a valid approval contemplated u/s 153D of the Act and consequentially, the entire search assessment framed in the hands of the assessee for various assessment years under consid ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ction 153D of the Act which does not provide for application of mind of the approving authority and hence any other interpretation contrary to the same would only result in rewriting the law. The Ld DR also argued that the assessee files details at the last moment and that is why the approval is obtained from ld JCIT in the last moment. The Ld DR also argued that the ld. JCIT or ld. Additional CIT does not look into the figures and even if there are mistakes in the figures, the same would not vitiate the assessment proceedings. 16. We find, as per the scheme of the Act, for framing search assessments, the Ld. AO can pass the search assessment order u/s 153A or u/s 153C of the Act only after obtaining prior approval of the draft assessment order and the conclusions reached thereon from the ld. JCIT in terms of section 153D of the Act. This is a mandatory requirement of law. The said approval granting proceedings by the ld. JCIT is a quasi judicial proceeding requiring application of mind by the ld. JCIT judiciously. In order to ensure smooth implementation of the aforesaid provisions, in consonance with the true spirit of the scheme of the Act, it is the bounden duty of the Ld. AO t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vestigation Wing, both the Ld. AO and the ld. JCIT are supposed to independently apply their mind in a judicious way before drawing any conclusions on the contents of the seized documents while framing the search assessments. As far as the argument of the Ld. CIT DR that the details were normally filed by the assessee at the last moment is concerned, the ld. AO has got every right to reject the said replies if not filed within the stipulated time. It is not the case of the revenue that the details were filed by the assessee in the instant case at the last moment. Even if it is so, as stated above, it is the prerogative of the ld. AO to accept the said letter containing details or reject the same as it was not filed within the stipulated time. On the contrary, if the ld. AO himself grants time to the assessee to furnish the details till the last moment, then no fault could be attributed to the assessee. In such circumstances, the only irresistible conclusion that could be drawn is that the ld. AO is not serious about the statutory deadlines provided in the Act. In our considered opinion, if the arguments of the Ld. CIT DR are to be appreciated that the ld. JCIT need not apply his mi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... particularly, the Tribunal notes that all that was looked at by the ACIT, was the draft assessment order. 13. In another words, it was emphasised that the approval was granted without examining the assessment record or the search material. The relevant observations made in this behalf by the Tribunal in the impugned order are extracted hereafter: 17.1 However, in the present case, we have no hesitation in stating that there is complete non-application of mind by the Learned Addl. CIT before granting the approval. Had there been application of mind, he would not have approved the draft assessment order, where the returned income of Rs. 87,20,580/-, Similarly, when the total assessed income as per the AO comes to Rs. 16,69,42,560/-, the Addl. CIT could not have approved the assessed income at Rs. 1,65,07,560/- had he applied his mind. The addition of Rs. 15,04,35,000/- made by the AO in the instant case is completely out of the scene in the final assessed income shows volumes. 17.2 Even the factual situation is much worse than the facts decided by the Tribunal in the case of Sanjay Duggal (supra). In that case, at least the assessment folders were sent whereas in the instant case, a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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