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2022 (8) TMI 1363 - AT - Income TaxAssessment u/s 153A - valid approval from ACIT, Central Range Jalandhar u/s 153D - HELD THAT:- The process of approval is a continuous process which was going by the AO with his senior officers. After a detailed discussion this approval was made. The approval was done on 21/03/2016 & assessment order was passed on 22/03/2016. We find no lacuna in the approval of the revenue authorities. Further in section 153D specifically mention about only for the approval. So, the grounds related to section 153D for mechanically approval is dismissed. We are dismissing the additional ground of the assessee. Incriminating material during the assessment proceeding found - whether this assessment was made on basis of incriminating or non-incriminating material? - HELD THAT:- The return of the assessee was filed u/s 139(1) which was processed u/s 143(1). Factually it is correct that the processing of return is only basis on same arithmetical adjustment and allowable deduction there is no such application of mind related to documents of the assessee. Respectful observation of this order which is stated that during processing of return u/s 143(1) there is no application of mind. In this factual interpretation the addition was made u/s 2(22)(e) related to deemed dividend such shares invested by the assessee to the company where he has the substantial interest. This particular investment is reflected in the books of account of the assessee. There is coherent relation in between company and assessee. The counsel of the assessee filed an additional ground which is under adjudication. CIT-DR vehemently opposed & pointed out that assessee had never taken this additional ground anywhere before the any of the lower authorities. The acceptance of additional ground was not in question in Rahul Mittal, supra case. We accept the additional ground in light of judgment of Rahul Mittal, supra, respectfully considering the judgment of Hon’ble Apex Court in the case of NTPC [1996 (12) TMI 7 - SUPREME COURT]. The additional ground of the assessee is accepted related assessment U/s 153A of the Act and the appeals of the assessees are allowed. Assessment u/s 153C - Additional ground - whether CIT(A) has erred in law and on facts in confirming the action of Ld. AO in passing the impugned assessment order u/s 143(3) r.w.s. 153C of the Act and that too without complying with the mandatory requirements and conditions u/s 153D as envisaged under the Income Tax Act? - The 153C will be applicable after the satisfaction noted by the ld. AO in relation to the related party. The notice U/s 153C was initiated on 12/10/2017& the order of assessment had completed on dated 27/12/2018. In this point, the assessment not at all time barred. In the case of Super Malls [2020 (3) TMI 361 - SUPREME COURT] is not come under the factual matrix of the assessee’s submission. As per the ld. Counsel the ld. CIT(A) has also erred by confirming the action of the ld. AO in passing order u/s 153D. Further adjudication is required against this issue. We accept that the additional ground & set aside the issue before the ld. CIT(A) by considering the additional ground of the assessee. issue u/s 153C is allowed for statistical purpose.
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