Search Assessment without JCIT’s Approval is invalid

On perusal of the provisions laid down under section 153C, it is apparent that after issuance of notice under section 153C, the Assessing Officer having jurisdiction over such other person (against which incriminating material has been found during the course of search conducted on a person) assess or re-assess income of such other person in accordance with the provisions of section 153A.

 Section 153B talks about time limit for completion of assessment under section 153A, whereas section 153D talks about necessity of prior approval for framing assessment in case of search or requisition. Thus the provisions laid down under section 153D are very much applicable in case of assessment of income of any other person (i.e., the person other than the person searched). Now the issue for adjudication is as to whether in absence of obtaining prior approval under section 153D of Joint Commissioner, assessment made under section 153C will be void or voidable/curable. The provisions under section 153D have been laid down under the heading ‘prior approval necessary for assessment in cases of search or requisition’. This heading itself suggests that obtaining prior approval for assessment in cases of search or requisition is necessary. Further the provisions under section 153D start with a negative wording ‘no order of assessment or re-assessment’ supported by the further wording ‘shall’ make the intention of the legislature clear that compliance of section 153D requirement is mandatory.