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TMI Blog2025 (3) TMI 87X X X X Extracts X X X X X X X X Extracts X X X X ..... mmissioner of Income Tax (Appeals) [CIT (A)] is bad both in the eye of law and on facts. 2. On the facts and circumstances of the case, learned CIT (A) has erred, both on facts and in law, in confirming the action of the AO despite the fact that the assessment order passed is bad in the eyes of law and liable to be quashed as the same was passed in violation of circular no. 10/2010 issued by CBDT which mandates that no order shall be passed without there being Valid Document Identification Number (DIN) quoted in the body of the order. 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 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 4. On the facts and circumstances of the case, learned CIT (A) has erred, both on facts and in law, in rejecting the contention of assessee that the order passed u/s 153A r.w.s. 113(3) of the Act in the absence of any incriminating material having been found during the course of search is invalid a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the addition of Rs. 1,00,00,000/- made by the AO on account of income declared by the assessee under income declaration scheme, 2016. (ii) That the above addition has been confirmed rejecting the detailed submissions and explanations filed by the assessee. 10. That the appellant craves leave to add, amend or alter any of the ground of appeal." 3. From the perusal of the grounds of appeal taken, we find that assessee has challenged the orders of lower authorities on various legal grounds which are at S. No. 1 to 6 however, during the course hearing ld. AR press only ground of appeal no 5 wherein the assessee challenge the assessment order on the technical ground in respect of approval granted u/s. 153D of the Act by the JCIT. The ld. AR drew our attention to copy of the approval granted by the ld. JCIT on 28.12.2019filed by the assessee along with written submissions filed. It was submitted that there were total Six cases containing total 21 different assessment years for which approval was sought by AO vide letter dt. 27.12.2019 reecived in the office of JCIT on 28.12.2019. The JCIT has granted approval in all the Six cases on the same day when the request was received in his ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Six cases for total 21 different assessment year is as under: 6. The JCIT has accorded his approval separately for each assessment year on same day i.e. 28.12.2019, the approval given for the impugned assessment year is as under: 7. From the perusal of the approval, It could be seen that the AO in the instant case is located at Karnal and the JCIT who has granted approval is located at Central Range, Chandigarh thus for obtaining the approval entire records needs to be carried to Karnal to Chandigarh and the JCIT has to examine all the material including the assessment folders, appraisal report and seized material before granting the approval which cannot be humanly possible in a single day. Though it was stated by the AO and the JCIT in their affidavits that discussions were held between them telephonically and also during their personal visits either at Chandigarh or at Karnal. However, facts remained that in the impugned assessment year itself, the assessment order carries as many as 70 pages and around 5 issues involved on which additions were made. It is expected from the approving authority that before according the approval at least he must have read the entire draft order ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Assessing Officer with the prior approval of the [Principal Commissioner or Commissioner] under sub-section (12) of Section 144-BA." 11. A plain reading of the aforesaid provision evinces an uncontrived position of law that the approval under Section 153D of the Act has to be granted for "each assessment year" referred to in clause (b) of sub-section (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 under Section 153D of the Act, the Approving Authority shall have to apply independent mind to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... val order. While elaborate reasonsneed not be given, there has to be some indication that the approving authority has examined the draft orders and finds that it meets the requirement of the law. As explained in the above cases, the mere repeating of the words of the statute, or mere "rubber stamping" of the letter seeking sanction by using similar words like "seen" or "approved" will 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 tha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nted for each of the assessment year whereas, in the instant case, the ld. Addl. CIT has granted a single approval for all assessment years put together." 17. Notably, the order 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. 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." 8. The ..... X X X X Extracts X X X X X X X X Extracts X X X X
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