INCOME TAX ACT, 1961

Section 153A Section 153D

Search and seizure - Assessment under section 153A - Validity - No proper approval obtained under section 153D

Assessee challenged validity of assessment framed under section 153A alleging absence of proper approval given by Addl. CIT, Central Range, Meerut under section 153D.Held: AO passed draft assessment order on 30-3-2015 and submitted the same for approval before Addl. CIT who was stationed at a place 250 kms. away from Dehradun on 30-3-2015, Addl. CIT gave the approval, subject to certain modifications/amendments on 30-3-2015 and AO passed order on the same date, i.e., 30-3-2015. It was not possible on part of Addl. CIT to go through the orders in about more than 100 cases on the very same day and give approval. Even if such approval was given, it could be said that the same was nothing but a technical formality without application of mind. Further, there was nothing on record to suggest that files had, in fact, moved from Dehradun to Meerut for obtaining approval. Therefore, mandatory provisions as required under section 153D were not complied with and, therefore, assessment was invalid in absence of proper approval under section 153D.

Followed:Rishabh Buildwell (P) Ltd. v. Dy. CIT vide ITA. No. 2122/Delhi/2018, Order dated 4-7-2019 : 2019 TaxPub(DT) 5073 (Del-Trib).

REFERRED :

FAVOUR : In assessee's favour.

A.Y. : 2008-09 to 2012-13

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