2022 (3) TMI 643 - ITAT DELHI

Validity of Assessment u/s 153A - Proof of valid approvals u/s 153D - function to be performed by the Addl. CIT or CIT in granting previous approval - HELD THAT:- In the instant case, as appears from the letter of the Assessing Officer seeking approval, he has sent only the draft assessment orders without any assessment records what to say about the search material. Therefore, the approval given in the instant case by the Ld. Addl. CIT is not valid in the eyes of law. We, therefore, hold that the approval u/s 153D has been granted without application of mind and is invalid, bad in law and is liable to be quashed. Since, we have held that the approval u/s 153D is invalid and bad in law, therefore, the Assessing Officer cannot pass the assessment order u/s 153A of the Act against the assessee. Therefore, all assessment orders are vitiated for want of valid approvals u/s 153D of the Act and as such no addition could be made against the assessee.

We quash the assessment order passed u/s 153A of the Act. The additional ground raised by the assessee in the cross objection is allowed.