Brief of the case
In the case of Smt. Shreelekha Damani, vs. The DCIT (OSD-1)CR-7 ITAT has held that In our considered opinion, the power vested in the Joint Commissioner/Addl Commissioner to grant or not to grant approval is coupled with a duty. The Addl Commissioner/Joint Commissioner is required to apply his mind to the proposals put up to him for approval in the light of the material relied upon by the AO. The said power cannot be exercised casually and in a routine manner. Hence, assessment order passed after taking so called approval is liable to be set a side.
Facts of the case
The case are that a search and seizure action u/s. 132 of the Act was carried out on 16.10.2008 and on subsequent dates on Simplex Group of Companies and its Associates. The Office/residential premises of the company and its Directors/connected persons were also covered. Simplex Group is engaged in the business of Reality, paper, Textile and Finance. On the basis of the incriminating documents/books of account found during the course of search and seizure operation, assessment was made u/s. 143(3) of the Act r.w. Sec. 153A and as per the endorsement on page-11 of the assessment order this order is passed with the prior approval of the Addl. Commissioner of Income Tax, Central Range-7, Mumbai.
The assessee has filed an appeal before ITAT
Issue
1. On the facts and in the circumstance of the case and in law the CIT(A) ought to have held that the AO had not complied with the provisions of Sec. 153D of the Act and hence the assessment under section 153A of the Act is bad in law.
