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2019 (7) TMI 1659 - AT - Income TaxValidity of assessment u/s 153A - non obtaining prior approval of the Joint Commissioner of Income Tax as required as required u/s 153D - correctness of JCIT’s approval - HELD THAT:- As decided in GEETARANI PANDA, MANJUSMITA DASH VERSUS ACIT, CIRCLE-2 (2) , BHUBANESWAR. [2018 (7) TMI 1888 - ITAT CUTTACK] has taken into consideration the settled legal position on the very issue of sec. 153D approval in light of earlier provision sec. 158BG vis-a-vis sec. 153D (supra) to conclude that the JCIT is not to accord a mere mechanical approval but he has to apply his mind in order to ensure that the assessing authority conducts appropriate enquiry and investigation. And also that there is no undue or irrelevant addition made in the assessment in issue. We also find that the tribunal’s leading decision in case of PCIT vs. Shreelekha Damani [2015 (8) TMI 1250 - ITAT MUMBAI] stands affirmed in hon'ble Bombay high court in [2018 (11) TMI 1563 - BOMBAY HIGH COURT]. We conclude in these facts and circumstances that the department has not proceeded to finalise the impugned assessment(s) in true light of the relevant mandatory provision sec. 153D of the Act mainly for the reason neither the Assessing Officer had sent anything more than the draft assessment order(s) nor the JCIT had an occasion to apply his mind to ensure the twin purpose of his statutory exercise (supra). We further make it clear that since the entire exercise was carried out from both the authorities’ end on the same date i.e. 28.03.2016 itself in absence all the corresponding records, the impugned approval does not satisfy the relevant parameters of law as settled in preceding case law. We therefore quash all the impugned assessment(s) framed u/s. 153A r.w.s. 143(3) for this precise reason alone. - Decided in favour of assessee.
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