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2018 (7) TMI 1888 - AT - Income TaxValidity of assessment u/s 153A - order of assessment being issued after the statutorily permitted time is barred by limitation - order of assessment as approved u/s 153D by the Ld. Addl. Commissioner of Income Tax before completion of the assessment - Held that:- In the instant case, it is not in dispute that though the impugned order of assessment is dated 31.3.2015 was issued and served manually only on 8.4.2015 on the Authorised Representative of the assessee. As relying on M/S. NIDAN, INFRONT OF DIG OFFICER VERSUS ACIT, CENTRAL CIRCLE-1, BHUBANESWAR [2018 (5) TMI 1024 - ITAT CUTTACK] in the instant case, the communication process of the assessment was not initiated admittedly within the prescribed period of limitation, hence it did not become an “order of assessment” within the period of limitation. We, therefore, have no hesitation in holding that the impugned order of assessment is barred by limitation. Referring to the alleged approval letter dated 27.3.2015 of the Addl. CIT, Range-1, Bhubaneswar the provisions contained in Section 153D as enacted by the Parliament cannot be treated as an empty formality. The provision has certain purpose. The purpose behind the enactment of the above provision in the Statute by the Parliament are two folds. Firstly, the approval of the Senior Authority will ensure that the assessee is not prejudiced by the undue or irrelevant addition or assessment. Secondly, the approval by Senior Authority will also ensure that proper enquiry or investigation are carried out by the Assessing Authority. Thus, the above provision provides for mental application of a Senior Officer of the Department, which in turn, provides safeguard to both i.e. Revenue as well as the assessee. Therefore, this important provision laid down by the legislature cannot be treated as a mere empty formality. The same view was expressed in the case of Akil Gulamali Somji vs ITO [2012 (4) TMI 318 - ITAT, PUNE] wherein, it was held that when the approval was granted without proper application of mind, the order of assessment will be bad in law, alsoconfirmed by HC [2013 (1) TMI 790 - BOMBAY HIGH COURT] In the instant case, we find that the Supervisory Authority has himself admitted that because of reasons stated by him, could not apply his mind and has accorded the approval mechanically to meet the requirements of law as the requirement was merely a formality. The said Supervisory Authority had a duty towards both the assessee as well as the Revenue which was failed to be performed in the instant case. We find that the approving authority has required the assessing authority to conduct further enquiry in respect of opening cash in hand. The Assessing Authority thereafter has never communicated his findings of the further enquiry to the Supervisory Authority and not taken the approval of justification of his findings. Thus, in our considered opinion, alleged approval letter dated 27.3.2015 of the Addl. CIT, Range- 1, Bhubaneswar does not constitute the approval which is envisaged by the provisions of section 153D - Decided in favour of assessee.
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