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2020 (1) TMI 1027 - AT - Income TaxAssessment u/s 153A - Addition being amount disclosed before ADIT and not shown in return of income - whether the addition made is null and void as it is not arising out of any seized material - approval given by JCIT u/s.153D is without application of mind ? - HELD THAT:- Since in the present case the letter Dated 05.01.2016 was qualified and subject to documents to be supplied by the A.O, it is clear that admission of the assessee in the said letter was not correct and true because it was not based on any evidence or material if found during search. Thus, the Board Circular Dated 10.03.2003 (supra) would apply to the case of the assessee that the Department should concentrate of collection of evidence of income and should not based on addition merely on the basis of confession obtained from assessee through the letter Dated 05.01.2016. Thus, there is no evidence on record or statement of assessee recorded during the course of search so as to prove that assessee has earned undisclosed income of ₹ 2.50 crores. Since no corroborate evidence have been brought on record or brought in the Orders of the authorities below, therefore, there was no justification for the authorities below to make the addition of ₹ 2.50 crores against the assessee. We set aside the Orders of the authorities below and delete the addition - Appeal of the assessee is allowed. Approval granted by JCIT under section 153D without application of mind - In identical issue have been considered in the light of Judgment of Pr. CIT vs., Smt. Shreelekha Damani [2018 (11) TMI 1563 - BOMBAY HIGH COURT] and it was held that “requirement of Section 153D of the I.T. Act are not satisfied in the case. It was, therefore, held that entire assessment order is vitiated and is null and void. Therefore, it was set aside and quashed.” In the present case, it is clear that A.O. did not refer to the seized material or the assessment record to the JCIT for his approval. It is not verified as to how the draft have been sent on the same day i.e., on 22.12.2017 to the JCIT from Jabalpur to Bhopal and as to how the approval have been received back on the same day i.e., on 22.12.2017 from Bhopal to Jabalpur. In the absence of any perusal of the record by the JCIT, it is clear that JCIT granted approval without application of mind and as such necessary conditions of Section 153D of the I.T. Act are not satisfied and as such the approval is invalid and bad in law. Consequently, the entire assessment order is vitiated and is liable to be quashed. - Decided in favour of assessee.
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