Approval u/s 153 D of Income Tax Act made in Mechanical Manner: Delhi HC upholds Annulment of Assessment Order [Read Order]
![Approval u/s 153 D of Income Tax Act made in Mechanical Manner: Delhi HC upholds Annulment of Assessment Order [Read Order]](https://www.taxscan.in/wp-content/uploads/2023/10/Approval-Income-Tax-Act-Mechanical-Manner-Delhi-HC-taxscan.jpg "Approval u/s 153 D of Income Tax Act made in Mechanical Manner: Delhi HC upholds Annulment of Assessment Order [Read Order]")
The Delhi High Court upheld the annulment of the assessment order as the approval under Section 153D of the Income Tax Act, 1961 was made in a mechanical manner. By the appeal, the appellant/revenue seeks to assail the order dated 31.10.2022 passed by the Income Tax Appellate Tribunal [“Tribunal”]. Sanjay Kumar, senior standing counsel, who appeared on behalf of...
The Delhi High Court upheld the annulment of the assessment order as the approval under Section 153D of the Income Tax Act, 1961 was made in a mechanical manner.
By the appeal, the appellant/revenue seeks to assail the order dated 31.10.2022 passed by the Income Tax Appellate Tribunal [“Tribunal”]. Sanjay Kumar, senior standing counsel, who appeared on behalf of appellant/revenue, informed the Court that insofar as the respondent/assessee’s cross-objection for the same AY i.e., AY 2017-18 was concerned, it was disposed of by the Tribunal via order dated 29.04.2022.
The appeal was disposed by the court via decision dated 13.07.2023, tilted Pr. Commissioner of Income Tax (Central)-2 vs Anuj Bansal, wherein it was held that “there are infirmities in the figures of original return of income as well as total assessed income and the Additional CIT while giving his approval has not applied his mind to the figures mentioned by the AO. Therefore, approval given in the instant case by the Addl. CIT, in our opinion, is not valid in the eyes of law. We, therefore, hold that 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.”
Section 153D requires that the Assessing Officer shall obtain prior approval of the Joint Commissioner in respect of “each assessment year” referred to in Clause (b) of sub-section (1) of Section 153A which provides for assessment in case of search under Section 132.
A Division Bench comprising Justices Rajiv Shakdher and Girish Kathpalia observed that “In view of aforesaid facts and circumstances, and since the annulment of the assessment order has been sustained by this Court, no substantial question of law arises for our consideration in this appeal. Accordingly, the appeal is closed.”
To Read the full text of the Order CLICK HERE
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