Shakuntalam Investment And Leasing Limited Vs ACIT (ITAT Delhi)
ITAT Delhi held that assessment order passed on the basis of consolidated approval under section 153D of the Income Tax Act in mechanical manner without application of mind is void-ab-initio and hence assessment is liable to be quashed. Accordingly, appeals are allowed.
Facts- Assessee has preferred the present appeal mainly contesting that the assessment orders passed u/s 153A/143(3) of the Act is void-ab-initio as the said assessment order has been passed based on combined/consolidated approval issued u/s 153D of the Act by the Jt. CIT, Central Range-1, Delhi dated 26.12.2019 in the mechanical manner, therefore, the impugned assessment orders and the orders of the Commissioner are liable to be quashed.
Conclusion- Coordinate bench in the case of ACIT vs. Sant Lal Aggarwal held that if a consolidated approval given by the ld. Addl. CIT for various assessees‟ for various assessment years is to be considered as a approval given for “each assessment year”, then it would render the requirement of passing an order for “each assessment year” with prior approval u/s 153D of the Act, nugatory. Therefore, the obligation on the approving authority is to verify the draft assessment order of each assessment year together with the related seized document to ascertain whether it complies with law as well as the procedure laid down. Hence it is established that the action of the ld Additional CIT in granting common approval for all the assessment years for various assessees‟ in a mechanical manner without application of mind is writ large.
