Hydrise Foods Pvt. Ltd. Vs DCIT (ITAT Agra)
Same-Day Mass Approval = Mechanical: ITAT Quashes 153A Assessments
Search took place on 26.09.2017 in Basant Group including Assessee. Assessments were completed u/s 153A r.w.s.143(3) on 30.09.2021 after obtaining approval u/s 153D from Addl.CIT, Central Range, Kanpur.
Assessee challenged the very foundation of assessment by contending that approval u/s 153D was mechanical. Tribunal examined the approval letter, which showed that draft orders of several assessees for multiple AYs were sent by AO on 29.09.2021 from Agra & approved by Addl.CIT at Kanpur on the very same day, making physical movement & independent examination humanly impossible. Tribunal relied heavily on the Third Member decision in Dheeraj Chaudhary (178 taxmann.com 360), along with Orissa HC Serajuddin & Co, Delhi HC Yum Restaurants, Shiv Kumar Nayyar, P&H HC FinDoc Finvest, and Allahabad HC Siddarth Gupta (SLP dismissed). Tribunal held that approval u/s 153D is a quasi-judicial safeguard, not a rubber stamp, requiring the Addl.CIT to examine seized material, draft orders, replies & independent reasoning. Common, same-day approval for multiple assessees showed lack of application of mind. Therefore, approval was invalid & search assessments for both years were quashed. Merits left open. Appeals allowed.
FULL TEXT OF THE ORDER OF ITAT AGRA
