Treatment of S. 153D Income Tax Act as pari-materia to S. 148 mechanism by AO without Approval: ITAT remands 49 Appeals to CIT(A) [Read Order]
Given the significant procedural lapse and in the interest of justice, the ITAT decided to remand all 49 appeals back to the CIT(A) for re-adjudication
![Treatment of S. 153D Income Tax Act as pari-materia to S. 148 mechanism by AO without Approval: ITAT remands 49 Appeals to CIT(A) [Read Order]](https://www.taxscan.in/wp-content/uploads/2024/08/ITAT-ITAT-Cochin-Income-Tax-Act-ITAT-remand-ITAT-remands-49-Appeals-CITA-Section-153D-AO-TAXSCAN.webp "Treatment of S. 153D Income Tax Act as pari-materia to S. 148 mechanism by AO without Approval: ITAT remands 49 Appeals to CIT(A) [Read Order]")
The Income Tax Appellate Tribunal ( ITAT ) Cochin Bench recently addressed a significant issue in a batch of 49 appeals involving various entities from the ABC Sales Corporation group for improper application of Section 153D of the Income Tax Act, 1961, which requires the Assessing Officer ( AO ) to obtain prior approval from a senior officer before making assessments under Sections 153A...
The Income Tax Appellate Tribunal ( ITAT ) Cochin Bench recently addressed a significant issue in a batch of 49 appeals involving various entities from the ABC Sales Corporation group for improper application of Section 153D of the Income Tax Act, 1961, which requires the Assessing Officer ( AO ) to obtain prior approval from a senior officer before making assessments under Sections 153A and 153C, often linked to search and seizure actions.
The cases were called twice but none appeared for the assessees and the tribunal therefore proceeded ex-parte.
The tribunal bench during the course of hearing noted that, with the able assistance coming from the Revenue represented by the learned CIT-DR that although the CIT(A) herein has indeed passed a very detailed order running into 56 pages in the the “lead” appeal; the fact remains that some of the fundamental issues raised therein have not been decided as contemplated u/sec.250(6) of the Income Tax Act requiring him to frame points of determination followed by a detailed adjudication.
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In this case, the CIT(A) had dismissed the assessee’s objection that the AO had treated Section 153D as equivalent to the mechanism under Section 148 (which deals with reassessment proceedings), without proper consideration of whether the approval was a mere formality or involved a proper application of mind.
The tribunal bench of Judicial Member Satbir Singh Godara and Accountant Member Amarjit Singh observed that this approach was flawed, referencing recent judicial precedents that highlighted the necessity of a non-mechanical approval process under Section 153D of the Income Tax Act.
Given the significant procedural lapse and in the interest of justice, the ITAT decided to remand all 49 appeals back to the CIT(A) for re-adjudication.
The tribunal emphasised that the CIT(A) must address the fundamental issue regarding the validity of the approval under Section 153D and reassess all other related grounds raised by the assessees.
To Read the full text of the Order CLICK HERE
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