Kapil Garg Vs ACIT (ITAT Delhi)
ITAT Delhi held that approval accorded u/s. 153D in stereotype manner and single approval has been granted for various Assessment Years is invalid sanction. Thus, order passed based on invalid sanction accorded u/s. 153D is liable to be quashed.
Facts- The assessment proceedings have been initiated against the Assessee pursuant to a search and seizure operation dated 30/07/2018 conducted u/s 132 of the Income Tax Act, 1961 at the residential as well as business premises of Assessees comprising M/s P. S. Enterprises and ors group of cases.
In all the above cases, an approval u/s 153D of the Act has been issued by the Addl. Commissioner of Income Tax in respect of the assessment years 2013-14 to 2019-20 pursuant to the office letter of DCIT. Based on the said approval granted u/s 153D of the Act, the assessment proceedings have been initiated for assessment years 2013-14 to 2019-20 and the assessment orders have been passed against the Assessee by making certain additions.
CIT(A) dismissed the appeal. Being aggrieved, the present appeal is filed.
Conclusion- Held that the assessment proceedings have been initiated pursuant to the approval u/s 153D of the Act accorded by the Addl. Commissioner of Income Tax, Central Range, Meerut. The approval has been granted on 11/08/2021 on the very same day of the office letter written by the A.O./DCIT, central Circle, Ghaziabad. There was no time available for the ACIT to verify and examine the draft assessment order, assessment record etc. The approval has been granted in stereotype manner without examining the facts of the case. Apart from the same, single approval has been granted for various Assessment Years. Thus, the respective assessment orders passed on the basis of invalid sanction accorded u/s 153D of the Act is liable to be quashed.
