Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2023 (9) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2023 (9) TMI 884 - ITAT MUMBAIAssessment u/s 153C - Proper procedure of approval not followed - Mechanical approval - whether the approval obtained by the Assessing Officer u/s. 153D is proper and approval granted by the Addl. CIT is as per provisions of section 153D? - HELD THAT:- It is fact on record that AO has passed draft Assessment Order making huge additions and such huge additions were approved without there being any application of mind. Further, the basis of addition was also not shared with the assessee. The facts in this appeal are squarely covered by the decision of the Coordinate Bench of the Tribunal in the case of Arch Pharmalabs Ltd[2021 (4) TMI 533 - ITAT MUMBAI]. We are inclined to decide the issue in favour of the assessee that approval granted u/s. 153D is not as per law. Even Ld. DR submitted based on the affidavit filed by the JCIT that the Range Head guides the Assessing Officer till final approval is granted. However, in our view, the approval process should indicate that proper procedure and the officer has applied his mind as per the procedures laid down by the legislature and as per the provisions. The claim made in affidavit is only afterthought. Therefore, the assessment made u/s. 144 r.w.s. 143(3)/153C of the Act is also bad in law. Accordingly, additional grounds filed by the assessee are allowed.
|