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TMI Blog2025 (1) TMI 970X X X X Extracts X X X X X X X X Extracts X X X X ..... 3. On the facts and circumstances of the case, the learned CIT (A) has erred, both on facts and in law, in rejecting the contention of the assessee that the assessment order passed under section 143(3) r.w.s. 153A is illegal and bad in law as the same has been passed without having valid jurisdiction. 4. On the facts and circumstances of the case, the learned CIT (A) has erred, both on facts and in law, in rejecting the contention of the assessee that the assessment order passed under section 153A r.w.s. 143(3) is bad and liable to be quashed as the same has been framed consequent to a search which was initiated under the wrong pretext. 5. On the facts and circumstances of the case, the learned CIT (A) has erred, both on facts and in law, in rejecting the contention of the assessee that the assessment order passed under section 153A r.w.s. 143(3) is bad and liable to be quashed as the same has been framed consequent to a search which itself was unlawful and invalid in the eyes of law. 6. 6. On the facts and circumstances of the case, the learned CIT (A) has erred, both on facts and in law, in rejecting the specific objection raised by the appellant before AO under section 12 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... search and seizure operation carried out at the various premises of Bajaj Group and its Associates including the Assessee and the Directors and others dated 20/04/2017, an assessment proceeding has been initiated against the Assessee and an assessment order came to be passed on 18/12/2019 u/s 143(3) r.w. Section 153A of the Act by making an addition of Rs. 32,41,000/- u/s 68 of the Income Tax Act, 1961 ('Act' for short). Aggrieved by the assessment order dated 18/12/2019, the Assessee preferred Appeal before the Ld. CIT(A). The Ld. CIT(A) vide order dated 09/11/2022 dismissed the Appeal of the Assessee. Aggrieved by the order of the Ld. CIT(A) dated 09/11/2022, the Assessee preferred the present Appeal on the Grounds mentioned above. 4. Though the Assessee has raised several grounds of Appeal, the Ld. Assessee's Representative restricted his submission only on Ground No. 9 and submitted that, the Additional CIT granted approval u/s 153D of the Act in respect of seven cases vide single letter which comprising of seven Assessment Years, further submitted that while according approval u/s 153D o the Act, approving authority has not examined the assessment record, seized materials ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed 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 is fulfilled. It was held that the "approval" as contemplated under 153D of the Act, This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 20/05/2024 at 21:34:51 requires the approving authority, i.e. Joint Commissioner to verify the issues raised by the Assessing Officer in the draft assessment order and apply his mind to ascertain as to whether the required procedure has been ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... equirement of the law. This is where the Technical Manual of Office Procedure becomes important. Although, it was in the context of section 158BG of the Act, it would equally apply to section 153D of the Act. There are three or four requirements that are mandated therein, (i) the Assessing Officer should submit the draft assessment order "well in time". Here it was submitted just two days prior to the deadline thereby putting the approving authority under great pressure and not giving him sufficient time to apply his mind ; (ii) the final approval must be in writing ; (iii) the fact that approval has been obtained, should be mentioned in the body of the assessment order." [Emphasis supplied] 14. During the course of arguments, learned counsel for the assessee apprised this Court that the Special Leave Petition preferred by the Revenue 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rder of approval dated 30.12.2020 which was produced before us by the learned counsel for the assessee clearly signifies that a single approval has been granted for AYs 2011-12 to 2017-18 in the case of the assessee. The said order also fails to make any mention of the fact that the draft assessment orders were perused at all, much less perusal of the same with an independent application of mind. Also, we cannot lose sight of the fact that in the instant case, the concerned authority has granted approval for 43 cases in a single day which is evident from the findings of the ITAT, succinctly encapsulated in the order extracted above." 9. The Hon'ble Orissa High Court in the case of ACIT vs Serajuddin & Co. 454 ITR 312 (Orissa) had an occasion to examine substantial question of law on the propriety of approval granted under s. 153D of the Act. The Hon'ble High Court made wide ranging observations towards the manner and legality of approval under s. 153D of the Act by observing that the approval under s. 153D of the Act being mandatory, while elaborate reasons need not be given, there has to be some indication that approving authority has examined draft orders and finds that it meets ..... X X X X Extracts X X X X X X X X Extracts X X X X
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