Inder Chand Bajaj Vs DCIT (ITAT Delhi)
ITAT Delhi held that approval memo u/s. 153D of the Income Tax Act is totally silent on the issues involved and has been granted omnibus approval without any thoughtful process being discernible. Thus, assessment order vitiated due to such mechanical approval.
Facts- A search and seizure operation carried out at the various premises of Bajaj Group and its Associates including the Assessee and the Directors and others dated 20/04/2017, an assessment proceeding has been initiated against the Assessee and an assessment order came to be passed on 18/12/2019 u/s 143(3) r.w. Section 153A of the Act by making an addition of Rs. 32,41,000/- u/s 68 of the Income Tax Act, 1961.
CIT(A) dismissed the appeal. Being aggrieved, the present appeal is filed.
Conclusion- Held that in the first para of the approval memo, the Addl. CIT referred the letter of the A.O. dated 17/12/2019, and in the second para, it was stated that the on the basis of discussion held from time to time the approval u/s 153D of the Act is granted in respect of seven cases. The approval dated accorded u/s 153D of the Act is bearing the printed date of 17/12/2019 and hand written date of ‘18/12/2019’ and the same has been signed on 18/12/2019. There is not even mentioning of any draft assessment order or the assessment records or the seized materials in the said approval letter. Such mechanical approval cannot be sustainable in law in the light of judicial dicta available. The approval memo is totally silent on the issues involved and has granted omnibus approval without any thoughtful process being discernible. A single approval u/s 153D has been accorded comprising out of seven Assessment Years. Thus, in chorus that the approval granted under s. 153D of the Act, if granted mechanically, will vitiate the assessment order itself.
