Saroj Bala Vs ACIT (ITAT Patna)
ITAT Patna held that consolidated approval under section 153D of the Income Tax Act granted in mechanical manner by JCIT without application of mind is invalid and hence assessment framed thereon is liable to be quashed.
Facts- A search & seizure and survey action have been conducted on 06/03/2019 by Investigation Directorate, Patna in the case of Shri Murlidhar Prasad. The search was also conducted on the Smt Saroj Bala and her business entities. Subsequently, notice u/s 153A of the Act was issued on 14/09/2020. The assessee filed return of income on 24/11/2020 u/s 153A of the Act. As per return of income of the assessee, the total income was Rs. 5,23,380/-. Finally, the Assessing Officer framed the assessment order vide order dated 24.08.2021 passed u/s.153A of the Act wherein an addition of Rs.7.00 lakhs was made by treating the same as unexplained money u/s.69A of the Act.
CIT(A) partly allowed the appeal. Being aggrieved, both revenue and assessee has preferred the present appeal.
Conclusion- Hon’ble Allahabad High Court in the case of Sapna Gupta, reported in [2023] 147 taxmann.com 288/[2022] SCC Online All 1294], the Hon’ble High Court has held that approval u/s.153D of the Act is to be granted by the competent authority on the draft assessment order for each year separately.
