Approval Granted u/s 153D of Income Tax Act without Verifying Assessment Records: ITAT quashes Assessment u/s 153A of Act [Read Order]
Approval – Income Tax Act – Assessment Records – Assessment – ITAT quashes Assessment – ITAT – Taxscan
Approval – Income Tax Act – Assessment Records – Assessment – ITAT quashes Assessment – ITAT – Taxscan
The Delhi bench of the Income Tax Appellate Tribunal (ITAT) while quashing the assessment passed under Section 153A of the Income Tax Act 1961 observed that approval granted under Section 153D of the Income Tax Act, 1961 was without verifying assessment records.
Section 153D of the Income Tax Act states that no assessment or reassessment order can be passed by an assessing officer below the rank of joint commissioner with respect to Section 153A of the Income Tax Act.
Section 153A of the Income Tax Act provision deals with income-assessing methods in the case of searched individuals.
Assessee, Anuj Bansal filed the above appeal before the tribunal on the ground that the assessment passed Section 153A of the Income Tax Act, 1961 without verifying the assessment records.
Sandeep Goel appeared for the assessee. P. Praveen Sidharth appeared for the revenue.
When the matter was considered by the bench, counsel for the assessee submitted that the assessment officer made the order without getting mandatory statutory approval under Section 153D of the Income Tax Act.
Further, counsel pointed out the approval given by the Addl. CIT, under section 153D of the Income Tax Act assessment records were never sent to the Addl. CIT. Therefore the approval was given in a mechanical manner and without verification of the assessment records.
Counsel for the revenue submitted that no specific format has been provided in the Act for the approval, hence the approval cannot be quashed on technical grounds.
After perusal of the records the two-member bench of Shamim Yahya, (Accountant Member) and Astha Chandra, (Judicial Member) allowed the appeal filed by the assessee and observed approval given under Section 153D has been granted in a mechanical manner and without application of mind and thus it is invalid and bad in law and consequently vitiated the assessment order for want of valid approval under Section 153D of the Income Tax Act.
To Read the full text of the Order CLICK HERE
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