Assessment order void as approval u/s. 153D granted in mechanical manner without application of mind

Sushen Mohan Gupta Vs ACIT (ITAT Delhi)

ITAT Delhi held that granting of mandatory approval under section 153D of the Income Tax Act by Additional Commissioner of Income Tax in a mechanical manner and without due application of mind is an empty ritual. Thus, order held void-abinitio for want of valid approval u/s. 153D.

Facts- Vide the present appeal, the appellant has mainly contested that AO has erred in assessing the total income of the appellant at Rs. 37,52,09,710/- as against the returned income of Rs. 29,11,950/- thereby making addition of Rs. 37,22,97,760/- to the returned income of the appellant under section 68 of the Act based on the contents of the so-called pen-drive received by the Investigation Wing from the Enforcement Directorate.

Additionally, it was also contested that assessment order passed u/s. 153A was passed beyond the statutory time limit prescribed u/s. 153B of the Act and that the order was passed without seeking mandatory approval u/s. 153D of the Act.

Conclusion- Held that there was no incriminating material found during the course of income tax search of the assessee on 2.1.2020. Since the year under consideration is an unabated /completed assessment on the date of search, no additions could be made in the absence of any incriminating material found during the course of search.