Mysore Bhaskara Pankaja Vs ACIT (ITAT Delhi)
ITAT Delhi held that approval granted u/s. 153D of the Income Tax Act by the superior authority in mechanical manner has no legal sanctity in the eyes of law. Thus, assessment order in consequence to such inexplicable approval lacks legality.
Facts- The assessee filed return of income declaring income at Rs. 26,61,930/- which was processed u/s 143(1) of the Income Tax Act. Search and seizure operation u/s 132 of the Act was carried out in Goenka Group of cases on 26/07/2017. The case of the assessee was also covered u/s 132 of the Act. The assessment was completed by computing the income of the assessee at Rs. 50,27,095/-.
CIT(A) confirmed the addition of Rs. 15,19,998/- made on account of seized jewellery treating the same as unexplained investment and deleted the addition of Rs. 2,39,757/- made by the A.O. on account of cash seized during the search operation. Being aggrieved, by the sustained addition, assessee preferred the present appeal mainly alleging that assessment order is liable to be quashed as it is contrary to the provisions of section 153D of the Income Tax Act.
Conclusion- The bare glance at the approval accorded by the Additional CIT makes it evident that such approval is generic and listless and accorded in a blanket manner without any reference to any issue in respect of any of the 178 cases of 29 Assessees including the Assessee herein for seven years. Apparently, the approval has been granted on a dotted line without any availability of reasonable time which firms up the belief towards non application of mind. Besides, the approval has been granted in a consolidated manner for several assessment years for which voluminous assessment orders were prepared.
