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TMI Blog2024 (6) TMI 1293X X X X Extracts X X X X X X X X Extracts X X X X ..... isal report before him or incriminating material collected in search etc. has buckled under statutory compulsion and proceeded to grant a simplicitor approval with caveats and disclaimers. This approach of the JCIT has ipso facto rendered the impugned approval to be a mere ritual or an empty formality to meet the statutory requirement and cannot thus be countenanced in law. The identical issue has been favourably adjudicated in assessee's own case in ITA 3306/Del./2018 order dated 23-08-2021 concerning other AY 2015-16 where co-ordinate bench found total lack of propriety in such statutory approval - We are unhesitatingly disposed to hold that the assessment order for AY 2014-15 in question, in pursuance of a hollow cosmetic approval accorded u/s 153D and undeniably without application of mind, is rendered unenforceable in law and hence quashed. - Decided in favour of assessee. - Shri S. Rifaur Rahman, Accountant Member And Shri Sudhir Pareek, Judicial Member For the Assessee : Shri Amit Goel, CA And Shri Pranav Yadav, Adv. For the Department : Ms. Nimisha Singh, CIT-DR ORDER PER S.RIFAUR RAHMAN, AM: 1. These four appeals have been filed by the Assessee against the orders of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ard to approval process, he submitted as under:- I. The assessment order passed by the assessing officer is contrary to the provisions of section 153D of the Act. The provisions of section 153D are as under:- uno order of assessment or reassessment shall be passed by the 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 153A or assessment year referred to in clause (b) of subf section (1) of Section 153B except with the prior approval of Joint Commissioner. 1.1. Whenever any statutory obligation is cast upon any authority, such authority is legally required to discharge the obligation by application of mind. The approval has to be statutory nature after due application of mind, it should be neither technical nor proforma approval. 1.2. The letter addressed by the AO to JCIT seeking his approval is reproduced as under: - F. No. DCIT/cc/Noida/S S/153D/2016-17/2623 Dated: 30/12/2016 To, The Joint Commissioner of Income Tax, Central Range, Aayakar Bhawan, Bhainsali Ground, Meerut. Sir, Sub: Draft assessment orders u/s 153A/153C/143(3) of the I.T. Act, 1961 in Apple Group (D.O.S 11/11/2014)- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... loo Narender Kumar Garg AADPG1563F 2009-10 to 2015-16 3 Sh. Yogender Kumar Garg , ABIPG9791P 2009-10 to 2015-16 4 Smt. Madhu Garg ABIPG9792Q 2009-10 to 2015-16 5 Sh. Pulkit Garg AJEPG5760A 2009-10 to 2015-16 6 Smt. Ruchi Garg AAIPG1671M 2009-10 to 2015-16 7 Sh. Pawan Kumar Garg AAHPG8132G 2009-10 to 2015-16 8 M/S Apple Industries Ltd. AAGCA9960N 2009-10 tO 2015-16 9 M/S Nirman Stelco Pvt. Ltd. AACCN4842Q 2009-10 to 2015-16 10 M/s M. G. Metalloy Pvt. Ltd. AAGCM5789D 2011-12 to 2015-16 11 M/S Promart Retail India Pvt. Ltd. ^AAFCP8743B 2009-10 to 2015-16 12 M/s Apple Sponge Power Limit. AAFCA1965L 2009-10 to 2015-16 13 M/S Apple Metal Industries Ltd. AAACD7670E 2009-10 to 2015-16 14 M/S Apple Buildtech Ltd. AAFCA8106K 2009-10 to 2013-14 15 M/S Apple Insurance Brokers Pvt.Ltd AAECA5320N 2009-10 to 2015-16 16 M/S Zync Global Pvt. Ltd. AAACZ5235H 2012-13 to 2015-16 17 M/S Apple Iron Enterprises Pvt. Ltd AAHCA8642G 2010-11 to 2013-14 18 M/S Mastermind Trade-in-Private Ltd AAECM9435E 2009-10 to 2015-16 3. A technical approval is accorded to pass assessment orders in the above cases on the basis of the drafts assessment orders submitted for the assessment years in reference years You are di ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e matter Apple Buildtech Pvt. Ltd.! ITA No. 4461- 4464/DEL/2019 - Ruchi Garg ITAT No. ITA Nos. 1436 to 1438 1440/Del/2022 - DCIT, Central Circle -II Versus Zync Global Pvt. Ltd., Noida 2024 (21 TMI 690 - ITAT DELHI - DCIT, Central Circle II, vs. M.G. Metalloy Pvt. Ltd. Formerly Apple Iron Enterprises Pvt. Ltd.), ITA No. 3632/Del/2019 - M.G. Metalloy Private Limited Versus DCIT Central Circle, Noida 2023 (10) TMI 686 - ITAT Delhi (A.Y. 2014-15) - MG Metalloy Pvt. Ltd. Versus DCIT, Central Circle, Noida 2021 (8) TMI 998 - ITAT Delhi (A.Y. 2015-16) Therefore, the issue involved in the present appeal stands covered in favour of the assessee. Reliance is also placed on the following decisions of Hon ble Jurisdictional Allahabad High Court:- PCIT v Sapana Gupta - 2022 (12) TMI 887 - Allahabad High Court PCIT v Siddharth Gupta - 2022 (12) TMI 1021 - Allahabad High Court PCIT v Subhodh Agarwal - 2023 (2) TMI 1072 - Allahabad High Court In view of the above, it is prayed to your honour to allow the appeal. 6. On the other hand, the Ld. DR objected to the above submissions and submitted that the approval was granted by following proper approval process and he stressed that the approval is on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... credited its own approval. (iv) abject failure in drawing satisfaction on objective material while giving a combined approval for 5 assessments and also without evaluating the nuances of each assessment year involved. The combined approval of several assessee combinedly for multiple assessment years runs contrary to the judgment of the Hon'ble Allahabad High Court in the case of PCIT vs. Sapna Gupta judgment dated 12- 12-2022 Income Tax appeal no. 88 of 2022. The Hon'ble High Court inter alia observed that the compliance of S. 153D qua each assessee and for each assessment year is expected. (v) The mundane approval under Section 153D in a cosmetic manner gives infallible impression of approval on dotted line and without discharging the onus placed on competent authority thus defeats the intrinsic purpose of supervision of search assessments. Such hawkish approval has thus tarred the assessment and rendered it bad in law. 11. It may be pertinent to observe, Section 153D bestows a supervisory onus on the designated authority in respect of search related assessment and thus enjoins a salutary duty of statutory nature. The designated superior authority is thus expected to confi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... opportunity to peruse the relevant underlying material for effective discharge of duty of supervisory nature owing to last minute supply of draft assessment orders. As discernible from the conjoint approval memo, the sanctioning authority (JCIT) has, in fact, under the force of circumstances, relegated his statutory duty to the subordinate AO, whose action the JCIT, was supposed to supervise as per the scheme of the Act. Manifestly, the JCIT, without any consideration of factual and legal position in proposed additions/disallowances and without contents of appraisal report before him or incriminating material collected in search etc. has buckled under statutory compulsion and proceeded to grant a simplicitor approval with caveats and disclaimers. This approach of the JCIT has ipso facto rendered the impugned approval to be a mere ritual or an empty formality to meet the statutory requirement and cannot thus be countenanced in law. 12. The identical issue has been favourably adjudicated in assessee's own case in ITA 3306/Del./2018 order dated 23-08-2021 concerning other AY 2015-16 where co-ordinate bench found total lack of propriety in such statutory approval. There are pletho ..... X X X X Extracts X X X X X X X X Extracts X X X X
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