Mechanical Approval Under Section 153D Without entry in Order Sheet is Fatal

Kavita Jain Vs DCIT (ITAT Delhi) ITAT Delhi, in the case of Kavita Jain vs DCIT, addressed the legality of approvals granted under Section 153D of the Income Tax Act, 1961. The tribunal found that the Additional Commissioner of Income Tax (Addl. CIT) had mechanically approved the draft assessment orders without proper consideration of the issues or documentation involved. This lack of thoughtful examination, as evidenced by a lack of detailed reasoning in the approval memo and absence of interaction or directions recorded in the order sheet, rendered the assessment orders invalid. Drawing from...