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2023 (11) TMI 795 - AT - Income TaxValidity of penalty levied u/s 271(1)(c) where the validity of assessment order itself is in doubt - Assessment u/s 153A questioned on approval Granted u/s 153D - addition to the total income of the assessee in the assessment framed u/s 153C r.w.s. 143(3) - difference in profit and capital balance reported in books of account maintained for income tax return purpose viz-a-viz books of account seized during the search - HELD THAT:- We find that the ACIT has granted approval under section 153D of the Act in a mechanical manner and without the application of mind and without considering the materials on record. Furthermore, the approval was granted on the very same day. The said power cannot be exercised casually and in a routine manner. We are constrained to observe that in the present case, there has been no application of mind by the JCIT Commissioner before granting the approval. Therefore, we have no hesitation holding that the assessment order made u/s 143(3) of the Act r.w. sec. 153C of the Act is bad in law and deserves to be annulled. The assessee accepted the assessment framed under section 153C read with section 143(3) of the Act despite the fact that the procedures as specified under section 153D of the Act were not complied with by the AO - As decided in M/s Atlanta Electricals Pvt. Ltd. [2019 (9) TMI 1235 - ITAT AHMEDABAD] wherein as held in such like non-descript and innocuous situation, where the quantum assessment itself is susceptible, the consequences in form of penalty under s.271(1)(c) of the Act would not, in our view, be justified - Decided in favour of assessee.
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