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TMI Blog2024 (8) TMI 1508X X X X Extracts X X X X X X X X Extracts X X X X ..... Tribunal [Tribunal], we find that the appeal fails to raise any substantial question of law. 2. We note that the assessment under Section 153A of the Income Tax Act, 1961 [Act] has ultimately come to be annulled by the Tribunal bearing in mind the evident non-application of mind while according approval as contemplated under Section 153D of the Act. 3. While dealing with an identical issue, we had in ITA 243/2023 enunciated the legal position in the following terms:- "10. The brief controversy involved in the present appeals pertain to whether the competent authority has granted approval under Section 153D of the Act in an inappropriate manner, dehors the settled position of law? 11. Recently, in the case of Pr. Commissioner of In ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on (1) of Section 153A of the Act. It is beneficial to refer to the decision of the High Court of Judicature at Allahabad in the case of PCIT v. Sapna Gupta [2022 SCC OnLine All 1294] which captures with precision the scope of the concerned provision and more significantly, the import of the phrase- "each assessment year" used in the language of Section 153D of the Act. The relevant paragraphs of the said decision 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 u ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 SCC 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... evenue 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. A similar view was taken by this Court in the case of Anuj Bansal (supra), whereby, it was reiterated that the exercise of powers under Section 153D cannot be done mechanically. Thus, the salient aspect 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." [Emphasis supplied] 4. A perusal of the discussion extracted hereinabove would lead us to conclude that that approval under Sect ..... X X X X Extracts X X X X X X X X Extracts X X X X
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