Apple Commodities Limited Vs DCIT (ITAT Delhi)
Approval u/s 153D must be specific to each assessment year, must involve independent application of mind, & cannot be granted in a blanket or mechanical manner- Delhi ITAT
Consequent to search operation u/s 132 conducted on 11.11.2014 along with Apple Group of Companies cases, the assesee filed return of income declaring Nil income. Assessment for the AY 15-16 was completed u/s 153C r.w.s. 144 & various additions were made, including unexplained transaction from seized documents, unexplained unsecured loans, unexplained cash deposits & interest disallowance on alleged fund diversion.
The main legal argument of the assessee was that the approval granted u/s 153D by the JCIT was mechanical & without proper application of mind, thereby making the entire assessment order void, that the Approval u/s 153D was given for 7 assessment years together and not separately as required, that JCIT approved all assessments in one day (11.01.2018), the day after the AO’s request (10.01.2018), making proper review unlikely, that the JCIT relied only on a certificate from the AO without reviewing seized material or draft assessment orders independently and that the Approval lacked any reasoning, analysis, or record of evaluation – it was a mere formality. Thus, whether the approval granted u/s 153D by the JCIT before completing the assessment was valid or mechanical &without application of mind, was the core issue.
