Case Law Details
Mysore Finlease Pvt Ltd Vs ACIT (ITAT Delhi)
ITAT Delhi held that statutory approval given by a quasi judicial authority (here, JCIT) without due application of mind as contemplated in section 153D of the Income Tax Act would be fatal to the entire search assessment proceedings.
Facts-
A search and seizure operation u/s 132 of the Act was carried out on various group companies. According to the investigation wing, these groups were found to be interconnected with each other and with some group of entry operators providing accommodation entries to beneficiaries in the form of share capital, share premium, unsecured loans , purchase and sale bills etc. Various incriminating documents were found and seized during the course of search and seizure operation in the group cases. Accordingly, the case of the assessee was also centralized to ACIT , Central Circle 13, New Delhi vide order passed u/s 127 of the Act . Notice u/s 153A of the Act was issued to various assessees.
It is mainly contested that the statutory approval granted by the ld. JCIT u/s 153D of the Act enabling the ld. AO to complete the search assessment, was a mere mechanical approval without due application of mind on the part of the ld. JCIT.
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