Minda Corporation Limited Vs DCIT (ITAT Delhi)
Common & Ritualistic 153D Approval Not Valid -Assessment Void Where Draft Orders Not Duly Approved
Delhi Tribunal was called upon to examine validity of search assessments framed u/s 153A r.w.s. 143(3) for A.Ys. 2016-17, 2017-18 & 2018-19. Cross appeals were filed by both Assessee & Revenue.
Assessee contended that AO originally passed assessment orders on 12.05.2021 without passing draft orders. Later, by corrigendum dated 17.05.2021, those were retrospectively treated as “draft assessment orders”. However, approval u/s 153D dated 19.04.2021 was mentioned in final orders dated 25.06.2021, even though on 19.04.2021 no draft orders existed. Thus, statutory pre-condition of valid approval u/s 153D was not satisfied. Further, approval granted was a common approval for seven years, passed in a mechanical manner without application of mind.
Revenue argued that corrigendum only cured a bona fide mistake & approvals were validly obtained.
Tribunal noted that approval u/s 153D must be granted for each assessment year separately after examining draft orders. In this case, the approval was perfunctory & ritualistic, covering multiple years together. Reliance was placed on PCIT Vs. Shiv Kumar Nayyar (Del HC), PCIT Vs. Sapna Gupta (All HC), ACIT Vs. Serajuddin & Co. (Orissa HC, upheld by SC) & PCIT Vs. Anuj Bansal. All these rulings emphasize that mechanical approval defeats legislative intent & vitiates assessment.
