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TMI Blog2025 (2) TMI 1028X X X X Extracts X X X X X X X X Extracts X X X X ..... other related materials for a minimum of 35 cases within such a short period of time more particularly looking to the fact that the entire records must have been shifted from Dehradun to Meerut for the perusal of the Addl. CIT.
We use the word "minimum of 35 cases" because this group alone contains 35 cases and the Addl. CIT could avail his other files also before him. The assessment orders, in the instant case is of 6 pages, appraisal reports was also to be quite a few pages and the submissions of the assessee would be innumerable. We are not aware about the nature and issues involved in the other cases and other assessment years. This is physically impossible task which has been admitted to by the ld. Addl. CIT. Consequently, the approval granted in this case is without application of mind.
Thus approval u/s. 153D of the Act granted in the impugned appeal by the Addl. CIT, is held to be invalid - Decided in favour of assessee. X X X X Extracts X X X X X X X X Extracts X X X X ..... wellers Group of cases, Dehradun Approval thereof - regarding Kindly refer to your office letter F. No DCIT/CC/DFA/2013-14/2760 dated 13.03.201.4 on the above mentioned subject. 2. in the following cases of Punjab Jewellers, Group of cases prior approval u/s 1530 of the Income Tax Act, 1961 is accorded for passing assessment orders u/s 153A of the I.T Act, 1961 In respect of the assesses for the assessment year as mentioned. Sl. No. Name & address of the assessee PAN Asst. Years 1 Raju Verma ABIPV8176F 2006-2007 To 2012-13 2 Sumit Verma AEKPV4635E 2006-2007 To 2012-13 3 Poonam Verma ACQPD3112N 2006-2007 To 2012-13 4 Ritu Verma AAOPV3196Q 2006-2007 To 2012-13 5 Ganpati Builders AAEFG6241R 2006-2007 To 2012-13 3. You are directed to pass necessary order, In the above cases for all the relevant years. This office letter approving the draft orders shall invariably be mentioned in the final orders. A copy of final order passed in these cases shall be sent to this office for record 4. Further, In the case of Sh. Satish Chander Kapoor, further enquires need to he conducted in respect of cheques mention in the agreement, as discussed with you. You shall r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 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 conte ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ll not satisfy the requirement 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 m ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sessee. 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. 18. Therefore, under the facts of the present case, considering the foregoing discussion and the enunciation of law settled through judicial pronouncements discussed hereinabove, we are unable to find any substantial question of law which would merit our consideration. 19. Consequently, the appeal stands dismissed. Pending application(s), if any, are also disposed of. He also placed reliance to the decision of hon'ble jurisdictional high court in following cases: - PCIT Vs. M/s MDLR Hotels Pvt. Ltd. In ITA No. 593/2023 dt. 30.07.2024 - PCIT Vs. Anuj Bansal in ITA No. 368/2023 dt. 13.07.2023 Reliance is also placed on the decision of Hon'ble Orrisa High court in the case of Serajuddin and Co. reported in [2023] 150 taxmann.com 146 (Orissa), wherein ..... X X X X Extracts X X X X X X X X Extracts X X X X
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