Minda Capital Pvt. Ltd. Vs ACIT (ITAT Delhi)
ITAT Delhi held that granting of single approval under section 153D of the Income Tax Act for difference assessment years and that too mechanically without application of mind is not sustainable. Accordingly, entire proceedings initiated u/s. 153C quashed.
Facts- Vide the present appeal, the appellant has raised an additional ground mainly contesting that approval accorded under section 153D of the Act (if any) is a mechanical and arbitrary approval without there being any application of mind and also without satisfying the statutory preconditions of the Act and as such, the assessment so framed is null and void and deserves to be quashed.
Conclusion- This Court in the case of Anuj Bansal has held that the exercise of powers under Section 153D cannot be done mechanically. Thus, the salient aspect which emerges from the abovementioned decisions is that grant of approval under Section 153D of the Act cannot be merely a ritualistic formality or rubber stamping by the authority, rather it must reflect an appropriate application of mind.
Held that we quash the entire proceedings initiated under section 153C r.w.s. 153A of the Act in the absence of a valid approval granted by the Ld. Addl.CIT, Central Range-4, Delhi.
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