TMI Blog2021 (1) TMI 909X X X X Extracts X X X X X X X X Extracts X X X X ..... Approval under section 153D have been granted by the JCIT without going through the seized material, appraisal report and other material on record. Thus, the approval is granted in a most mechanical manner and without application of mind. Therefore, same is invalid, bad in Law and void abinitio and as such all assessments under section 153A got vitiated and as such A.O. was not having jurisdiction to pass the assessment orders under section 153A. Granting approval under section 153D of the I.T. Act is not a mere formality, but, it is a supervisory act which requires proper application of administrative and judicial skill by the JCIT on the application of mind and this exercise should be discernable from the Orders of the approval under section 153D of the I.T. Act. While granting approval under section 153D, the JCIT shall have to peruse all the incriminating material and other seized material on record and proper procedure if have been adopted by the A.O. and appraisal report as well. The JCIT shall apply his mind to such material on record before granting his approval, otherwise, it will be invalid and bad in Law. AO passed the draft assessment order on 30.03.2015 and s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... M Biswas, CIT DR ORDER All the appeals by different Assessees are directed against the common Order of the Ld. CIT(A)-23, New Delhi, Dated 30.12.2018, for the above assessment years. 2. We have heard the Learned Representatives of all the parties through videoconferencing and perused the material on record. All parties have also filed written submissions which are also taken into consideration. 3. This Order shall dispose of all the Group 52 Appeals pertaining to Talwar and Duggal Group of Cases in which identical issues have arisen. 4. Learned Counsel for the Assessee mainly argued in ITA.No.1813/Del./2019 in respect of Shri Sanjay Duggal as a lead case and references also made to all the remaining appeals as well. 5. Ld. CIT(A) recorded the facts of the case in detail under the Head Background of the Case in the impugned order which refers to the factual position in respect of all the above Assessees. The background of the facts are as under : 5.1. A search and seizure operation was conducted on 29.12.2015 against Shri Rajnish Talwar [who was Ex- General Manager (Sales) ] of M/s. Jagatjit Industries Ltd., [M/s. JIL]. Shri Sanjay Duggal [who was Ex.DGM ( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... showing similar pattern of transaction as discussed above are detailed as below : S.No. Account No. Account Name Branch Name of Bank 1. 419.53.1193 Rajnish Talwar Gurgaon South Indian Bank 2. 303.53.6305 Rajnish Talwar, Chesta Charvi Rohini, Delhi South Indian Bank 3. 358.53.3615 Ratna Talwar Chittaranjan Park South Indian Bank 4. 419.53.1194 Ratna Talwar Gurgaon South Indian Bank 5. 303.53.6611 Ratna Talarr Rohini South Indian Bank 6. 303.53.9693 Kritika Talwar Rohini South Indian Bank 7. 303.53.10682 Chesta Talwar Rohini South Ind ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (in the range of ₹ 3 to 4 lakhs was being shown. Enquiry from the Excise Authority, Haryana revealed that M/s Alfa India was not authorized to sell liquor. The 26AS statement of M/s Sohan Lal Singla AOP or M/s Om Prakash Singla AOP was not reflecting the name of M/s Alfa India as collector, as per the provisions of Section 206C of the Income Tax Act, 1961 where, liquor seller is supposed to collect 1% of the total trade value as TCS from the buyer and deposit the same into the Government Account. Considering, the payment made to M/s Alfa India by M/s Sohan Lai Singla M/s Om Prakash Singla, as bogus purchase of liquor by them, a search was conducted against MAPSKO Group, along with search seizure opratoins at the residential premises of Shri Sanjay Duggal and Sh. Rajnish Talwar {ex-employees of M/s Jagatjit Industries Limited(JIL)} as they were the beneficiaries of the fund transferred from the bank account of M/s. Alfa India. 5.8. During the course of search and seizure action under section 132(1) of the Income Tax Act, 1961 against MAPSKO Group, it was gathered that M/s Om Prakash Singla AOP and M/s Sohan Lal Singla AOP were making payment to M/s Alfa India, against ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uring the course of search, the replies of Shri Sanjay Duggal were very inconsistent regarding questions posed to him in respect of M/s Alfa India. His response varied as under : i. Upon being asked about the activity of M/s Alfa India, Sh. Sanjay Duggal stated that M/s Alfa India was in the business of promotional activities like brand promotion through gift distribution in liquor trade on behalf of M/s Discovery Asia AOP and its member Sh. O.P. Singla. The gifts were purchased in cash, as stated by him. ii. It is to be noted that Sh. Sanjay Duggal is no way related to Sh. O.P. Singla. During the period in question when he was associated with M/s Alfa India, he was employee of M/s Jagatjit Industries Limited. The purchase of gift in cash is also not verifiable. It is understandable that he can engage in sales promotion on behalf of M/s Jagatjit Industries Limited but certainly not on behalf of Sh. O.P. Singla AOP or M/s Alfa India. iii. Upon being asked why the payment was received in the bank account of M/s Alfa India i.e. A/c no. 358.73.2431 of South Indian Bank, Sh Sanjay Duggal responded that funds into the bank account of M/s Alfa India was received against un-acco ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the rationale of cheque received in the account of M/s Alfa India and its subsequent utilization. Shri Rajnish Talwar responded that the utilization was meant for incentivizing the key managerial persons belonging to L-1 license holder groups namely Sohan Lal Singla (Gurgaon), Prem Singla Co. (Sonipat) Jai Krishan Liquors (Faridabad), Harish Aneja Co. (Gurgaon), Scot Yard (Gurgaon) and other wholesale and retail salesmen in Haryana. The funds in the account of M/s Alfa India was borne by M/s Jagatjit Industries Limited in the form of rebate adjustment to these wholesalers. 5.15. During Post search, when Shri Rajnish Talwar was questioned by DDIT (Inv.) with regard to end usage of cash withdrawn by the family members of Duggal and Talwar Family, there were inconsistent response in comparison to the statement given during the time of search. Post search, he stated that all the cash withdrawn, after layering through the account of M/s Alfa India, was deposited with Mr. Vinod Kumar Banga, COO, M/s JIL and only part of it was used to procure gifts to incentivize retail salesmen and retail shop in-charge in Haryana, which was procured by the Head Office and he was not aware of all ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uggal at M/s Jagatjit Industries Limited i.e, Shri Rajnish Talwar has stated that cash was utilized for funding pay24 off/ gift in kind for the sales personnel/ key managerial person of the distributors of M/s JlL. On the other hand, Shri Sanjay Duggal, who was part of sales team of M/s JIL is not aware of utilization of cash. It is, therefore, noted that there is apparent contradiction in the statements of Shri Sanjay Duggal and Shri Rajnish Talwar with regard to utilization of cash withdrawn through the account of M/s. Alfa India and others. 5.17. The A.O. also noted that the basis for collection of cheques into the account of M/s Alfa India was sought from, some of the distributors of liquor/IMFL who have made payment into the bank accounts of M/s Alfa India. Certain copies of instructions were produced, in limited nos. by Singla's of MAPSKO Group on behalf of their firms as above. The copy of instructions was sought from other liquor firms as well, but it was not responded to, by them. The A.O. in view of the above discussion and perusal of the statement concluded that : i) Rebate and discount has not been adequately passed on from M/s Jagatjit Industries Limited. As ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ansfer instructions (purportedly belonging to them). Forged documents i.e. Transfer instructions, have been signed by Sh. Rajnish Talwar and Sh. Sanjay Duggal. Their argument of loss of Job Pressure , leading to their signing of transfer instructions, which they knew very well is not true factually, is very weak. The blank transfer instructions and detailed working prepared by Sh. Sanjay Duggal, matching with contents of blank transfer instructions, have been found from the email id of Sh. Sanjay Duggal. Their argument that Sh. Vinod Kumar Banga, prepared it and sent to Sh. Sanjay Duggal through pen drive for verification, lacks credibility as it is against established organizational hierarchy rules. iv) There is variation with regard to utilization of cash withdrawn through the channel of M/s Alfa India, during search and post-search period, in the statements of Sh. Sanjay Duggal and Sh. Rajnish Talwar. At no point of time, during the course of search, Sh. Sanjay Duggal or Sh. Rajnish Talwar, stated that cash was deposited with Mr. Vinod Kumar Banga. Contrastingly, during postsearch period they stated that cash withdrawn through the channel of M/s Alfa India was deposited with ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... arising out of machinery of M/s Alfa India (difference on account of sales promotion expense booked in the books of M/s Jagatjit Industries Limited and the actual rebate and discount communicated to its dealers/ distributors). The family members of Duggal and Talwar family have not disclosed in their ITR s, the particulars of funds received, in their bank accounts, after transfer of funds from the bank account of M/s Alfa India. viii) On the other hand, excess sales promotion (rebate and discount) expense is reflected in the accounts of distributors in the books of account of M/s. Jagatjit Industries Limited, in the comparison to the accounts of M/s. Jagatjit Industries Limited, in the books of account of distributors (as revealed by enquiry in respect of certain distributors). There is manifestation of collection, greater than the sale value, in respect of certain distributors (minor distributors), in their accounts in the books of account of M/s Jagatjit Industries Limited, during particular financial year/years between 2008-09 to 2012-13. This excess collection has happened on account of inadequate passing of rebate and discount by M/s Jagatjit Industries Limited to its deale ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y Asia). During post-search period, Sh. Sanjay Duggal has stated that cash obtained after layering through the bank account of M/s Alfa India was delivered to Mr. Vinod Kumar Banga and its utilization was not known to him. xiii). There is variation in response of Sh. Rajnish Talwar, with regard to utilization of cash obtained through the mechanism of Layering through the bank account M/s Alfa India. During the course of search, Sh. Rajnish Talwar stated that cash was utilized for pay off/disbursal of incentive to the key persons in liquor trade belonging to L-1 license holder groups like M/s Sohan Lai Singla, Gurgaon, M/s Prem Singla Co., Sonepat, M/s Jai Krishan Liquors, Faridabad, M/s Harish Aneja Co., Gurgaon, M/s Scot Yard, Gurgaon and other wholesale and retail salesman in Haryana. During the post-search period, Sh. Rajnish Talwar stated that cash was delivered to Mr. Vinod Kumar Banga and gift was purchased at the Head office level of M/s. Jagatjit Industries Limited. A part of cash proceeds was utilized for purchase of gift and he was not aware about the fate of remaining cash delivered to Mr. Vinod Kumar Banga. At no time, during the course of search, Sh. Sanjay Dugga ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aon 2. 303.53.6305 Rajnish Talwar, Chesta, Charvi Rohini, Delhi 3. 303.53.10682 Chesta Talwar Rohini 4. 0303.73.2290 M/s. KCC Enterprises Rohini 5. 0419.73.318 M/s. Alpine India Gurgaon 5.19. The chart showing the sums credited to the Talwars saving accounts and his minor daughter Ms. Chesta Talwar along with proprietary concerns namely M/s. Alpine India and M/s. KCC India during F.Y. 2008-2009 are detailed as under : Name Amount Rajnish Talwar 3,63,06,004 KCC Enterprises 51,82,332 Alpine 44,62,000 Chesta Talwar 75,00,000 Total 5,34,50,336 5.20. During the search at the residence of Shri Rajnish Talwar, these amounts were disclosed at the time of preliminary st ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ggal and Tarun Duggal are recorded on the dates as per Annexure-A attached to the Order. It is noted that it can be seen that entries recorded in the bank statements of M/s. Alfa India were confronted. Moreover, various material seized during the course of search was also confronted. From reading of these statements, it can be made-out that as a result of search and seizure operation and post-search investigation, the incriminating material has come on record to indicate that Members of Talwar Group and Duggal Group have routed unaccounted money for arranging accommodation entries in various forms including in the form of unsecured loans / share capital / premium, long term and short term capital gains. This incriminating material would have never been presented to the Department but for the search and seizure action. The incriminating material was also confronted to the main persons of the Talwar Group and Duggal Group by the Investigation Wing as per Annexure-A which is mentioned at page-28 of the impugned order. 5.23. The statement was recorded under section 131(1A) on 26.04.2016 whereby Shri Rajnish Talwar made surrender of ₹ 2,63,23,399/- on account of unaccounted inc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Addition under section 2(22)(e) of the I.T. Act. (iv) Addition on account of Commission paid on obtaining accommodation entries. (v) Addition on account of share capital/premium. 5.26. The details of Assessee-wise income returned and assessed by the A.O. in respect of 52 Assessees are as under : S.No. ITA No. A.Y. Name of the Assessee Returned Income Assessed Income as per AO 1 1813/Del/2019 2010-11 Sanjay Duggal, 3-E/42, NIT, Faridabad, Haryana PAN No. AESPD6712J 3,16,030/- 1,18,88,190/- 2 1814/Del/2019 2011-12 Sanjay Duggal, 3-E/42, NIT, Faridabad, Haryana PAN No. AESPD6712J 4,28,880/- 1,12,17,710/- 3 1815/Del/2019 2012-13 Sanjay Duggal, 3-E/42, NIT, Faridabad, Haryana PAN No. AESPD6712J 4,96,180/- 1,02,14,050/- 4 1816/Del/2019 20 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 96,90,000/- 15 1620/Del/2019 2012-13 Ratnashri Buildtech Pvt. Ltd., C/o Kapil Goel, Adv., F26/124, Sector 7, Rohini, Delhi. PAN No. AADCR8863Q 36,87,160/- 1,28,67,160/- 16 1621/Del/2019 2014-15 Ratnashri Buildtech Pvt. Ltd., C/o Kapil Goel, Adv., F26/124, Sector 7, Rohini, Delhi. PAN No. AADCR8863Q 50,62,260/- 56,99,390/- 17 1622/Del/2019 2010-11 Ratna Talwar, C/o Kapil Goel, Adv., F-26/124, Sector-7, Rohini, Delhi PAN No. ACGPT9955M 4,79,450/- 4,34,07,330/- 18 1623/Del/2019 2011-12 Ratna Talwar, C/o Kapil Goel, Adv., F-26/124, Sector-7, Rohini, Delhi PAN No. ACGPT9955M 41,49,650/- 2,44,72,270/- 19 1624/Del/2019 2012-13 Ratna Talwar, C/o Kapil Goel, Adv., F-26/124, Sector-7, Rohini, Delhi PAN No. ACGPT9955M ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 13,41,510/- 31 1809/Del/2019 2010-11 Poonam Duggal, 3E-42-NIT, Faridabad, Haryana. PAN No. AESPD6713K 2,07,710/- 77,98,730/- 32 1810/Del/2019 2011-12 Poonam Duggal, 3E-42-NIT, Faridabad, Haryana. PAN No. AESPD6713K 2,10,130/- 74,59,340/- 33 1811/Del/2019 2012-13 Poonam Duggal, 3E-42-NIT, Faridabad, Haryana. PAN No. AESPD6713K 6,99,820/- 56,47,230/- 34 1812/Del/2019 2013-14 Poonam Duggal, 3E-42-NIT, Faridabad, Haryana. PAN No. AESPD6713K 22,31,910/- 30,74,390/- 35 1801/Del/2019 2010-11 Neeru Duggal, 3E-42NIT, Faridabad, Haryana. PAN No. AHNPD0991P 5,37,090/- 89,91,240/- 36 1802/Del/2019 2011-12 Neeru Duggal, 3E-42NIT, Faridabad ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 810/- 47 1823/Del/2019 2012-13 Duggal Estate Pvt. Ltd., 3/E-42, NIT, Faridabad, Haryana. PAN No. AACCD1642A 29,53,300/- 1,02,08,300/- 48 1824/Del/2019 2011-12 Duggal Sons Buildwell P. Ltd., H-1140, Nehru Colony, NH-3, Faridabad, Haryana. PAN No. AACCD5891M 2,07,520/- 1,80,57,520/- 49 1825/Del/2019 2011-12 Duggal Sons Buildwell P. Ltd., H-1140, Nehru Colony, NH-3, Faridabad, Haryana. PAN No. AACCD5891M 1,88,000/- 1,65,08,000/- 50 1826/Del/2019 2012-13 Duggal Sons Buildwell P. Ltd., H-1140, Nehru Colony, NH-3, Faridabad, Haryana. PAN No. AACCD5891M 3,96,230/- 1,82,46,230/- 51 1827/Del/2019 2015-16 Duggal Sons Buildwell P. Ltd., H-1140, Nehru Colony, NH-3, Faridabad, Haryana. PAN No. AACCD5891M ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion of jurisdiction by the A.O. to frame the valid assessments under section 153A for want of valid approval under section 153D of the I.T. Act, 1961, as is raised in the grounds of appeals raised in the main appeals. One of the additional ground raised in the case of Shri Sanjay Duggal is reproduced as under : That assessment framed u/s. 153A/ 143(3) for the period under consideration is void ab initio being passed on basis of invalid and incomplete and inchoate (consolidated) approval u/s 153D by Add CIT Central Range 1 New Delhi (as last line of approval as provided to asses see vide RT1 Applications indicates and highlights order so approved is not final and same can be subject matter offurther change by Ld AO after granting of said approval as seemingly some acts were yet to be ensured to be done by Ld A O in completion of assessment) and ergo assessment framed as confirmed by Ld CIT-A deserves to be quashed and assessment may be declared as nullity 6.2. Learned Counsel for the Assessee submitted that the additional ground is legal in nature and arising out of the record without reference to any undisputed question of fact. The additional ground would go to the roo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s no where specified the prescription of Law and is apparently invalid without application of mind. The assessees later on have also filed separate applications in all the appeals raising an additional ground of appeal challenging the validity of approval under section 153D of the I.T. Act, 1961, by JCIT. It is not in dispute that all the material is available on record with regard to additional ground of appeal. The additional ground is legal in nature and goes to the root of the matter in determining the validity of the assessments framed under section 153A of the I.T. Act, 1961. All material are available on assessment record and no additional evidences are required for taking decision of the new ground of appeal raised by the assessee. Both the parties during the course of arguments have not disputed any question of fact. The Hon ble Punjab Haryana High Court in the case of VMT Spinning Co. Ltd., vs., CIT 389 ITR 326 (P H) following the decision of Hon ble Supreme Court in the case of National Thermal Power Co. Ltd., 229 ITR 383 (SC) on identical facts and circumstances directed to admit the additional ground of appeal and remanded the matter to the Tribunal for adjudicating ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he applications for admission of additional ground above for deciding the issue on merits. In view of the above, the request of the assessees for admission of additional/ new ground is allowed. 9. Learned Counsel for the Assessee submitted that approval under section 153D is based on non-application of mind and without any independent enquiry and overlooking/ ignoring important/significant aspect of earlier assessments being made in the hands of M/s. JIL etc., He has submitted that under section 153D of the I.T. Act, 1961, prior approval of JCIT is required for assessment to be framed in the cases of search and considering the provisions of Section 153D along with the provisions contained under section 153A of the I.T. Act, 1961, following are the striking features of these provisions :- I. The assessee is to given separate notice for assessments for each year as specified under section 153A of the I.T. Act. II. That assessee is to file separate ITR for each year as specified in Section 153A. III. Separate assessment orders are to be passed for each year as specified in Section 153A. IV There is an important concept mentioned in Section 153A of abated and non-abated ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... herefore, JCIT was bound to grant approval under section 153D with due and proper application of mind for each year separately. However, in the present case, the JCIT has given approval under section 153D for all the years together involved in search. The Approving Authority has completely in a mechanical and ritualistic given approval as an idle formality and empty ritual. In one line the Approving Authority has given blank go-ahead to pass Orders under section 153A etc., without even taking minimum possible pains to take appropriate note of year-wise amount of assessed income as computed. The rationale of word Each as specifically referred to in Sections 153D and 153A deserves to be given effective/proper meaning so that underlying legislative intent as per Scheme of Assessment of Sections 153A to 153D is fulfilled. He has submitted that it is well settled Law that taxing statute, must be constructed strictly. The legislative intent behind Section 153D can be discerned/ gathered from the CBDT Circular No.3/2008 Dated 12.03.2008 in which it is highlighted that approval of the Approving Authority is mandatory. Therefore, the Approving Authority should apply their mind on the mate ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r family and even no telescoping benefit have been given. The credits appearing in the bank accounts of the assessees have generated into some assets, loans, share capital, capital gains etc., and further investments which have been added twice or thrice by the A.O. The assessees have also moved an application for rectification under section 154 of the I.T. Act pointingout the same error but the same have not been taken care till date. The assessees clearly explained that assessees are conduit of JIL being their employees and whatever was the direction of the JIL have been carried-out in the matter. The assessees are not beneficial of any of the amount lying in the account of M/s. Alfa India. The assessments have been framed in violation of the Board Circular that proper assessment shall have to be framed as per Law. The A.O. as well as the Approving Authority have thus, not applied their minds to the material on record and being the quasi judicial authority shall have to give reasons in the Orders approving the draft assessment order which is also lacking in the present case. All assessments have been framed at the fag end of the assessment period and even in some cases the reques ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... New Delhi in ITA.Nos.48 to 52/DDN/2019, Dated April, 2020. 6. Order of ITAT, Delhi G-Bench, Delhi in the case of Rishabh Buildwell P. Ltd., New Delhi vs., DCIT, Central Circle, Ghaziabad in ITA.No.2122/Del./2018 etc., Dated 04.07.2019. 7. Order of ITAT, Lucknow B Bench, Lucknow in the case of AAA Paper Marketing Ltd., New Delhi vs., ACIT, Central Circle-I, Kanpur in ITA.No.167/Lkw/2016 etc., Dated 28.04.2017 8. Order of ITAT, Ranchi Bench, Ranchi in the case of M/s. Rajat Minerals Pvt. Ltd., vs., DCIT, Central Circle-1, Ranchi in IT (SS) A.Nos.41 to 47/Ran/2019 etc., Dated 20.01.2020 9. Order of ITAT, Cuttack Bench, Cuttack in the case of Geetarani Panda, Bhubaneswar vs., ACIT, Circle 2(2), Bhubaneswar in IT (SS) A.No.1/CTK/2017 etc., Dated 05.07.2018. 9.2. Learned Counsel for the Assessee, therefore, submitted that approval under section 153D in all the cases have been granted in a most mechanical manner without any application of mind and without any independent examination of seized material and other material ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ir family Members. The A.O, therefore, correctly made the additions under section 68 of the I.T. Act because onus upon assessee to explain unexplained deposits in their Bank Account have not been discharged. The A.O. as well as JCIT have considered the statements of Shri Sanjay Duggal and Shri Rajnish Talwar and Others recorded at the time of search and thereafter, in which they have clearly explained that they are the conduits of M/s. JIL and ultimately received the amounts in question which remained unexplained, therefore, all the assessees being beneficiaries are liable to explain the source of the amounts deposited in their Bank Accounts and hence, valid approval have been granted under section 153D of the I.T. Act, 1961. Therefore, the additional grounds raised by the assessees deserves dismissal. 11. We have considered the rival submissions and perused the written submissions filed by the parties and considered the material on record. It is an admitted fact that search and seizure action were carried-out in the cases of the assessees on 29.12.2015. Section 153A have been inserted into the Income Tax Act w.e.f. 01.06.2003. Prior to that there were provisions contained under ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dings of the search and any other material existing or brought on record by the A.O. Therefore, these were the mandatory provisions contained in Section 153A which shall have to be satisfied by the A.O. before proceeding to frame assessment in the cases of persons searched under section 132 of the I.T. Act, 1961. Further safeguard have been provided for framing the assessments under section 153A that prior approval shall be necessary for assessments in the cases of the search or requisitioned, under section 153D of the I.T. Act. Section 153D of the I.T. Act is reproduced as under : 153D No Order of assessment or re-assessment shall be passed by an Assessing Officer below the rank of Joint Commissioner in respect of each assessment year referred to in Clause (b) of Sub-Section (1) of Section 153A or the assessment year referred to in Clause (b) of sub-section (ii) of Section 153B except with the prior approval of the Joint Commissioner. Provided that nothing contained in this section shall apply where the assessment or reassessment order, as the case may be, is required to be passed by the Assessing Officer with the prior approval of the Commissioner under sub-section ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ity also cannot exercise its power of prior approval to give directions to the Adjudicating Authority in what beneficial to accept/ appreciate the material on record in regard to the compensation payable. Otherwise, it would tantamount to blurring the distinction between Approving Authority and Appellate Authority . 11.5. The Hon ble Gauhati High Court in the case of Dharampal Satyapal Ltd., vs., Union of India [2019] 366 ELT 253 (Gau.) Manu/GH/07070/2018 in para-28 has held as under : When an Authority is required to give his approval, it is also to be understood that such Authority makes an application of mind as to whether the matter that is required to be approved satisfies all the requirements of Law or procedure to which it may be subjected. In otherwords, grant of approval and application of mind as to whether such approval is to be granted must co-exist and, therefore, where an Authority grants an approval it is also to be construed that there was due application of mind that the subject matter approved and satisfies all the legal and procedural requirements. 11.6. Therefore, in the cases of search, assessment orders whether framed under section 153A or 153C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rocedure if have been adopted by the A.O. and appraisal report as well. The JCIT shall apply his mind to such material on record before granting his approval, otherwise, it will be invalid and bad in Law. We may refer to such Orders as under. 11.8. Order of ITAT, Delhi Bench, Delhi in the case of M3M India Holdings vs., DCIT [2019] 71 ITR (Trib.) 451 (Del.) in which in paras 11 to 14 it was held as under : 11. On Ground No.1.3, Learned Counsel for the Assessee submitted that no proper sanction as required under section 153D have been received, therefore, assessment order is illegal and bad in Law. Learned Counsel for the Assessee referred to page 46 of the assessment order and submitted that Addl. CIT, Central Range, Chandigarh communicated the sanction under section 153D to the A.O. on 31st January 2014 and the assessing officer on the same day i.e., 31st January 2014 passed the assessment order. He has referred to page-48 of the paper book, which is copy of Fax message dated 5th February 2014 in connection with the communication of sanction/approval of Addl. CIT. PB-31 is the reply filed before A.O. by assessee on 29th January 2014. PB-469 is the reply to the RTI applicat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... upon the Judgment of the Allahabad High Court in the case of S K Gupta and Co. vs ITO 246 ITR 560 (All.). He has submitted that to the same effect there is another Judgment of the Allahabad High Court in the case of M.D. Overseas Ltd., vs., DGIT 333 ITR 407 (All.) He has, therefore, submitted that the approval in this case though not conveyed to the Assessing officer on time, but, is also given in a mechanical manner. Learned Counsel for the Assessee relied upon Judgment of the Honorable Bombay High Court in the case of Pr. CIT vs Smt. Shreelekha Damani in Income Tax Appeal No. 668 of 2016 dated 27th November 2018. He has submitted that the draft assessment order was sent from Faridabad to Chandigarh on 30th January 2014 and it is not clarified as to how it was sent, whether through messenger or courier or any other valid mode. Therefore, no time was left to consider the assessment record. Since last reply is filed on 29th January 2014, therefore, there was no application of mind by the assessing officer or the Addl. CIT to pass the assessment order within the time. Learned Counsel for the Assessee also relied upon order of ITAT, Jodhpur Bench in the case of Smt. Indira Bansal vs., ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r section 153B(1)(b) of the Income Tax Act, 1961. Further, Section 153D of the Income Tax Act provides that no order of assessment or reassessment shall be passed by the assessing officer below the rank of Joint Commissioner in respect of each assessment year referred to in clause (b) of sub-section (1) of Section 153A or assessment year referred to in clause (b) of sub-section (1) of Section 153B except with the prior approval of Joint Commissioner. Therefore, for passing the impugned assessment order, the assessing officer who is in the rank of DCIT shall have to obtain prior approval of JCIT. The Learned Counsel for the Assessee referred to PB-31, which is last reply filed before assessing officer on 29th January 2014. The assessing officer written a letter to the Addl. CIT, Chandigarh on 30th January 2014 sending a draft assessment order for his consideration and approval in terms of Section 153D of the Income Tax Act, copy of which is filed at page 46 of the PB. The assessing officer is stationed at Faridabad. However, the Addl. CIT is stationed at Chandigarh. The Addl. CIT, Chandigarh granted approval under section 153D of the Income Tax Act on 31st January 2014, copy of wh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... MBAY ORDINARY ORIGINAL CIVIL JURISDICTION INCOME TAX APPEAL NO. 668 OF 2016 The Pr. Commissioner of Income Tax ..Appellant v/s. Smt. Shreelekha Damani. ..Respondent. Mr. A.R. Malhotra a/w Mr. N.A. Kazi for the appellant Mr. Jehangir Mistri, Senior Counsel a/w Mr. Atul Jasani for the respondent CORAM : AKIL KURESHI M.S. SANKLECHA, J.J. DATED : 27th NOVEMBER, 2018. P.C. 1. This appeal is filed by the Revenue challenging the judgment of Income Tax Appellate Tribunal ( the Tribunal for short) dated 19th August, 2015. 2. Following question was argued before us for our consideration Whether on the facts and circumstances of the case and in law, the Tribunal was justified in holding that there was no 'application of mind' on the part of the Authority granting approval ? 3. Brief facts are that the Tribunal by the impugned judgment set aside the order of the Assessing Officer passed under Section 153A of the Income Tax Act, 1961 ( the Act for short) for Assessment Year 2007-08. This was on the ground that the mandatory statutory requirement of obtaining an approval of the concerned authority as fl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nough time left to analyze the issues of draft order on merit. Therefore, the order was approved as it was submitted. Clearly, therefore, the Additional CIT for want of time could not examine the issues arising out of the draft order. His action of granting the approval was thus, a mere mechanical exercise accepting the draft order as it is without any independent application of mind on his part. The Tribunal is, therefore, perfectly justified in coming to the conclusion that the approval was invalid in eye of law. We are conscious that the statute does not provide for any format in which the approval must be granted or the approval granted must be recorded. Nevertheless, when the Additional CIT while granting the approval recorded that he did not have enough time to analyze the issues arising out of the draft order, clearly this was a case in which the higher Authority had granted the approval without consideration of relevant issues. Question of validity of the approval goes to the root of the matter and could have been raised at any time. In the result, no question of law arises. 8. Accordingly, the Tax Appeal is dismissed. 13.2. The ITAT, Jodhpur Branch in the case ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... CIT has gone through the assessment record, before accepting the draft assessment order. Thus, there was no application of mind on the part of the Addl. CIT before granting approval. The Addl. CIT, Chandigarh has merely gone through the draft assessment order as per PB-47. Therefore, the contention of Learned Counsel for the Assessee is justified that the approval was granted in a most mechanical manner without application of mind and such approval was intimated to assessing officer only on 5th February 2014, after passing of the assessment order on 31st January 2014. The above decisions are clearly applicable to the facts and circumstances of the case. In view of the above discussion, we are of the view that no valid approval/sanction have been granted by the Addl. CIT, Chandigarh before passing the assessment order in the matter. The requirement of Section 153D of I.T. Act, 1961, are not satisfied in this case. We accordingly hold that entire assessment order is vitiated and is null and void. We, accordingly, set aside the orders of the authorities below and quash the assessment order in the matter. Resultantly all additions stand deleted. In the result, Ground No.1.3 of the app ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... essing Officer with the prior approval of the Commissioner under sub-section (12) of section 144BA. 23. First of all, we observe that we are in agreement with the contention of ld CIT DR based on the judgment of Karnataka High Court in the case of Gopal S Pandit (supra), wherein, it was held that the provisions of section 153D of the Act do not require that any opportunity of hearing to be given to the assessee by the authority who has to approve the draft assessment order passed by the Assessing Authority. Therefore, there is no requirement of allowing opportunity of hearing to the assessee before granting approval under section 153D of the Act. It is also not a contention of the assessee/appellant that they were not provided due opportunities of hearing before granting approval. 24. On careful consideration rival submissions, we note that the legal contention of the assessees regarding procedure for granting approval order dated 23.11.2017 u/s.153D of the Act can be summarized mainly on two points viz; (i) the approving authority i.e. ld JCIT has granted approval in a mechanical and hasty manner without even perusing the relevant assessment records and draft assessment o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... val. The Tribunal committed an error in holding that the same is invalid. 26. In almost similar facts and circumstances, the Delhi Bench in M3M India Holdings (supra), the Tribunal in para 14 held thus: 14. Considering the facts of the case in the light of above discussion, it is clear that assessee filed last reply before assessing officer at Faridabad on 29th January 2014 and according to Learned Counsel for the Assessee, it contained more than 500 pages. Therefore, it is difficult for the Assessing Officer at Faridabad to go through these voluminous papers and prepare a draft order on 30th January 2014, so that the draft order could be transmitted to the Addl. CIT at Chandigarh on same day. In reply to RTI application, the assessing officer has reported that no record of mode of dispatch of assessment record to the Addl. CIT is available with the Assessing Officer. Similarly, no record is available as to how the draft order and assessment record have been received by Addl. CIT at Chandigarh. The Addl. CIT, Chandigarh did not mention in his approval dated 31st January 2014 (supra), if he has gone through the assessment record or that assessment record was produced bef ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... id Supervisory authority had a duty towards both the assessee as well as the revenue which was failed to be performed. The relevant paras 25 26 read as follows: 25. 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. 26. Further, 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 153 of the Act. Thus, following the decision of the Hon'ble Bombay High Court in t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 14,72,53,800/- u/s.143(3) Sd/- Joint Commissioner of Income Tax (Central), Bhubaneswar End: Record for the AY 2010-11 to 2016-17 (In Seven Folders) The approval granted in the case of Shilpa Seema Constructions Pvt Ltd., available at page 1 of paper book is as under: OFFICE OF THE JOINT COMMISSIONER OF INCOME TAX (CENTRAL), AAYAKAR BHAWAN ANNEXE. 4TH FLOOR. RAJASWA VMAR. BHUBANESWAR-751007 F.No .JCIT(Central) /BBSR/153D CC-1 BBSR/2017-18/ 3137 Date: 23.11.2017 To The Assistant Commissioner of Income Tax, Central Circle-1, Bhubaneswar. Sub: Approval of the Assessment orders u/s 153D of the LT. Act, 1961 in respect to the cases of M/s Shilpa Seema Construction P Ltd- Reg Ref: Your letter no. ACIT/CC-l/BBSR/Report/2017- 18/8 dated 17.11.2017 seeking approval of draft assessment orders u/s 153D Approval is hereby accorded as per the provisions of section 153D of the I.T. Act for passing the assessment orders in respect to the following cases. Sl.No. Name of the Assessee PAN A.Y. Total Assessed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 43(3) in both the cases after satisfying himself with the draft assessment orders. This letter has been written to the JCIT (Central) by approving authority i.e. JCIT (BPU) pertaining to the office communication regarding additional ground of appeal, which are being adjudicated but in view of approval order dated 23.11.2017, thus we are inclined to accept the contention of ld A.R. that this submission of approving authority is mere an attempt to fill the gaps and procedural lacunas occurred in the procedure adopted by JCIT while granting approval under section 153D of the Act and, therefore, the contention of ld A.R. in this regard hold the field. 32. Similarly letter dated 4.1.2019 issued by JCIT (Central), Bhubaneswar to the CIT (Audit ITAT), Bhubaneswar is merely a covering letter supplying copy of the approval dated 23.11.2017, which cannot be treated as an explanation to the approval dated 23.11.2019 curbing the mistake in the procedure adopted by the JCIT while granting approval u/s.153D of the Act. On these subsequent letters/ correspondences, we are of the considered view that for adjudicating legal ground of assessees challenging the validity of approval u/s.153D o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s of right person in the right assessment year and on the other hand he is also responsible and duty bound to do justice with the taxpayer/assessee by granting protection against arbitrary or unjust or unsustainable exercise and decision by the AO crating baseless tax liability on the assessee and thus he has to discharge his duties as superior authority. Thus, granting approval u/s.153D of the Act is not merely an official formality but it is a supervisory act which requires proper application of administrative and judicial skill by the authority on the application of mind and this exercise should be discernible from the order of approval u/s.153D of the Act. 36. In our humble understanding the provisions of section 153D of the Act has been introduced by the legislature in its cautious wisdom to make it mandatory on the supervisory authority/approving authority to discharge the duty towards both the assessee as well as revenue to follow the proper procedure and to apply his mind on the material, relevant evidences and other documents including materials found during search post search investigations and explanation supporting documents of the assessee to the issue show c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... specific and useful purpose. It is apparent that the purpose behind enactment of the said provision in the Statute by the legislature are of two folds viz (i) before approval, the Sr. Authority will ensure that the assessee should be protected against undue or irrelevant addition disallowances in the assessment and (ii) the approving granting authority will also ensure that proper enquiry or investigations are carried out by the Assessing Officer on all the relevant materials including material in hands of the department at the time of initiating search proceedings, material or documents found and seized during search operation and materials found and unearthed during post search investigations and enquiries. Therefore, said provision provides and requires application of mind by the approving authority of the department which, in turn, provides safeguard to the both the parties i.e. revenue and the assessee. Therefore, the provisions of section 153D of the Act cannot be treated as a mere formality and mandate therein required to be followed by the approving authority in a judicious manner by due application of mind in a manner of cautious judicious or quasi judicial authority. T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e from the approval order and no other extraneous material/document can be seen in this regard. 40. In view of above, we are inclined to hold that if an approval has been granted by the approving authority in a mechanical manner without application of mind then the very purpose of obtaining of approval u/s.153D and mandate of enactment by the legislature will be defeated. In the present case, the approving authority, the ld JCIT got five days time but from the order of approval, we are unable to see any exercise by the approving authority and even in the approval orders (supra), he has not mentioned that the relevant appeal folders/files along with assessments/reassessment orders have been perused or any discussion or consultation has been made with the AO prior to granting of approval u/s.153D of the Act. Accordingly, we are compelled to hold that the approval granted by the ld JCIT in the appeals under consideration has been granted in a mechanical manner without application of mind and that the assessments/reassessment orders passed by the AO on such approval are declared to be void and bad in law. We hold so. 41. In view of aforesaid discussion, we clearly find that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cer below the rank of Joint Commissioner in respect of each assessment year referred to in clause (b) of section 153A or the assessment year referred to in clause (b) of sub-section (1) of section 153B, except with the prior approval of the Joint Commissioner. Provided that nothing contained in this section shall apply where the assessment or reassessment order, as the case maybe, is required to be passed by the Assessing Officer with the prior approval of the Commissioner under sub-section (12) of Section 144BA. 12. The legislative intent can be gathered from the CBDT Circular No. 3 of 2008, dated 12.3.2008 which read as under: 50. Assessment of search cases Orders of assessment and reassessment to be approved by the Joint Commissioner. 50.1 The existing provisions of making assessment and reassessment in cases where search has been conducted under section 132 or requisition is made under section 132A does not provide for any approval for such assessment. 50.2 A new section 153D has been inserted to provide that no order of assessment or reassessment shall be passed by an Assessing Officer below the rank of Joint Commissioner except with the previous appr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... be held to be granted after due application of mind and can be held to be valid in the eye of law? 15. To decide the above issue, order dated 27.03.2015 passed by the Additional CIT was again carefully perused. The contents of the Approval, as reproduced in Para 4, speak for itself loud and clear. The following inferences are inevitable from the bare reading of the said order. Draft Assessment orders were placed before the Additional CIT, Central, Kanpur on 27.03.2015 at 3.50 PM for the first time and soon on the same day it was granted. As clearly mentioned in the Approval under challenge, that prior to this date the case was never discussed with the authority granting the approval. The Additional CIT has further noted that even the questionnaire as was required to be issued with the approval of Additional CIT, in view of CBDT instruction was not issued with his approval. He further observed that since, there was no time left to analyze the issue of draft order on merit, therefore, the said order is approved, as specifically mentioned in the said order, solely relying upon the undertaking obtained from the AO that he has taken due care while framing the assessment that all ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... T, we find that the Ld. AR has rightly pointed out that in the facts of case of AAP Paper Marketing Limited (supra) there may be some justification for the qualified approval in view of the fact that the limitation in that case was getting expired on the day when the draft assessment orders were put up before the Additional CIT, Central Circle, Kanpur for his approval. However, to the disadvantage of the revenue in the case on hands there can be no little justification for qualified approval as the proposal for approval was put up before the Additional CIT on 27.03.2015 at 3.50 PM and at the same time it was granted, without any application of mind on the pretext that limitation is going to get expired on 31.03.2015. Thus, in the case at hand despite availability of time, the Additional CIT has been taking excuse of limitation and has chosen to grant approval without application of his own mind but on the undertaking of the AO that while completing the assessment as per the draft assessment order, all the observations made in the appraisal report relating to examination/ investigation as also the issues identified in the course of examination of seized material have carefully cons ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... proval was thus, a mere mechanical exercise accepting the draft order as it is without any independent application of mind on his part. The Tribunal is , therefore, perfectly justified in coming to the conclusion that the approval was invalid in eye of law. We are conscious that the statue does not provide for any format in which the approval must be granted or the approval granted must be recorded. Nevertheless, when the Addl. CIT while granting the approval recorded that he did not have enough time to analyze the issues arising out of the draft order, clearly this was a case in which the higher authority had granted the approval without consideration of relevant issues. Question of validity of the approval goes to the root of the matter and could have been raised at any time. In result, no question of law arises. 20. Similar view has been adopted by the Cuttack Bench in the case of Geetarani Panda (supra) (APB140-154) wherein following order passed under section 153D of the Act by the Additional CIT was subjected to challenge before the ITAT on the ground of non-application of mind. ITAT held as under : 23. In the instant case, the alleged approval letter dt. 27th M ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... essed by the Pune Benches of the Tribunal in the case of Akil Gulamali Somji vs. 1TO in ITA Nos. 455 to 458 (Pune) of 2010, order dt. 30th March, 2012, wherein it was held that when the approval was granted without proper application of mind, the order of assessment will be bad in law. The Hon ble Bombay High Court in the case of CIT vs. Akil Gulamali Somji in IT Appeal (L) No. 1416 of 2012, order dt. 15th Jan., 2013 concurred with the view of the Tribunal that not following of the provisions of s. 153D of the Act will render the related order of assessment void. 25. 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. 21. It is the bounden duty of the Additional Commissioner of Income Tax to in accordance with the law, while discharging statutory functions an obligation is casted upon him by the Act to apply his mind wh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mselves with the relevant provisions and become well-versed with the law on the subject. Any remissness on their part can only be at the cost of the national exchequer and must necessarily result in loss of revenue. At the same time, we have to bear in jnind that the policy of law is that there must be a point of finality in all legal proceedings, that stale issues should not be reactivated beyond a particular stage and that lapse of time must induce repose in and set at rest judicial and quasi judicial controversies as it must in other spheres of human activity, (emphasis supplied) In view of these peculiarity of the facts we are of the opinion that second inning cannot be granted to the revenue. 24. In view of the above, we hold that if the approval is granted by the superior authorities in mechanical manner without application of mind then the very purpose of obtaining approval is defeated. Moreover, where 4 clear days time was available with the administrative authority, it was a half-hearted approval and as' such held as no approval in the eyes of law. Accordingly, we have no -hesitation in declaring that the Approval granted by the Additional CIT, Central, Kanpur ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uestions [B] and [C] viz., whether lack of approval under section 153D would invalidate the assessment order and was not a curable defect, it may be noted that section 153D of the Act mandates that no order of assessment or reassessment shall be passed by an Assessing Officer below the rank of Joint Commissioner in respect of each assessment year referred to in clause (b) of subsection (1) of section 153A or the assessment year referred to in clause (b) of subsection (1) of section 153B, except with the prior approval of the Joint Commissioner. In the present case, the assessment order has been passed by an Income Tax Officer, who admittedly is an officer below the rank of Joint Commissioner; therefore, the provisions of section 153D of the Act would be applicable. Section 153D starts with the words No order of assessment or reassessment shall be passed. .. . In other words, the language employed in the provision is couched in the negative and therefore, there is a prohibition against passing of an assessment or reassessment order, except with the prior approval of the Joint Commissioner. 10. In Shin Etsu Chemical Co. Ltd. v. Aksh Optifibre Ltd. [2005] 7 SCC 234, the Supreme ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ises of Mr. Shriram Soni, certain documents belonging to the assessee were found and seized. Notice u/s. 153C was issued to the assessee and assessment u/s. 153C r.w.s. 144 have been framed for all the 4 A.Ys. under consideration. Before the Ld CIT(A), the assessment orders were questioned both on legal issue and on merits. On legal issue, the validity of assessment orders in absence of approval obtained u/s. 153 D of the Act of Joint Commissioner of Income Tax has been questioned. On merits additions made by the A.O were impugned. Since the assessee could not succeed in its appeal, the present appeals have been preferred in questioning the first appellate orders. 12. On perusal of the provisions laid down u/s. 153C of the Act, it is apparent that after issuance of notice u/s. 153C, the A.O having jurisdiction over such other person (against which incriminating material has been found during the course of search conducted on a person) arose or re-assess income of such other person in accordance with the provisions of Sec. 153A. Sec. 153B talks about time limit for completion of assessment u/s. u/s. 153A, whereas S. 153D, talks about necessity of prior approval for framing ass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... constructions. The wordings and language used in Sec. 153D of the Act and the heading prior approval necessary for assessment in cases of search or requisition under which, Sec. 153D has been provided do not leave an iota of doubt about the very intention of the legislature to make the compliance u/s. 153D a mandatory. There is no dispute that if a provision is mandatory, an act done in breach thereof will be invalid, but, if it is directory, the act will be valid although non-compliance may give rise to some other penalty if provided by the Statute. The general rule that non-compliance of mandatory requirements results in nullification of the Act is subject at least to one exception. If contain requirements or conditions are provided by a statute in the interest of a particular person, the requirements, or conditions although mandatory may be waived him if no public interest are involved and in such case, the act done still be valid even if the requirement or condition has not been performed. Here, before us, is not a case where consent of assessee will waive the condition of obtaining prior approval u/s. 153D of the Joint Commissioner of Income Tax by the A.O for framing assess ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... In the present case, assessments in question have been framed on 27.12.2007. 13. In the case of Mrs. Rataabai N.K. Dubhash (Supra), the difference between cancellation and amendment of assessment in view of the provisions of Sections 143, 144B, 153 and 251 of the I.T. Act 1961 has been dealt with. The Hon'ble High Court has been pleased to hold as under : In view of the above discussion, we are of the clear opinion that incases falling under section 144B of the Act, the quasi-judicial function of the Income-tax Officer as an assessing authority comes to an end the moment the assessee files objections to the draft order. The power to determine the income of the assessee thereafter gets vested in the Inspecting Assistant Commissioner to whom the Income-tax Officer is required to forward the draft order together with objections. The only thing that remained to be done by the Income-tax Officer is to pass a final order in accordance with the directions given by the Inspecting Assistant Commissioner. The function of the income-tax Officer to make the final assessment under section 144B(5) of the Act is more in the nature of a ministerial function because he can pass the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... leased to approve the decision of Tribunal. In view of these decisions and the position of law provided u/s . 153D of the Act, we hold that the assessment orders impugned framed in absence of obtaining prior approval of the Joint Commissioner for the A.Ys. under consideration are invalid as null and void and are quashed accordingly. 15. The decisions relied upon by the Ld. D.R are having different facts and issue, hence are not helpful to the revenue. In the case of Guduthur Bros. (Supra) the levy of penalty without affording a hearing to the assessee was questioned before the appellate authority, who set aside that order. The matter ultimately travelled to the Hon'ble Supreme Court and it was held that the ITO was well within his jurisdiction to continue the proceedings from the stage at which the illegality has occurred and to assess the appellants to a penalty, if any. Before the Hon'ble M.P. High Court in the case of Sardarilal Bhasin ( Supra), the issue was regarding applicability of prescribed limitation u/s. 275 in a penalty order passed after the case is remanded by an appellate authority. The Hon'ble Court was pleased to hold that the limitation prescribe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the Act is decided in favour of the assessee. The assessment orders in question are thus quashed as null and void. Personal hearing to the Assessee before according the approval under section 153D 4.3 From perusal of the above decisions, it is categorically clear The assessee is not entitled to have personal hearing from JCIT before granting approval u/s. 153D, as the assessee had already been heard during the assessment/reassessment proceedings by the Assessing Officer and Therefore, we are in agreement with the submissions of the ld. DR that the assessee is not required to be given any hearing for the purpose of granting any approval. There is inbuilt purpose for seeking approval from an Officer below the rank of JCIT. Whether approval granted by the officer under 153D is administrative order 4.4. Now, we will be examining whether the order passed by the JCIT/Addl. CIT in the case u/s. 153D was an administrative order or an order having civil, criminal or penal consequences. The similar provision was examined by the various high courts pertaining to section 158 BG, and after examining the scheme of Act had came to the conclusion that the pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lly urged before it. 4.1 Chapter XIV-B contains a special procedure for assessment of search cases. Section 158BC prescribes the procedure for block assessment. Clause (c) of section 158BC enables the Assessing Officer, on determination of the undisclosed income of the block period, to pass an order of assessment and determine the tax payable by him on the basis of such assessment. Clause (b) requires he Assessing Officer to proceed in the manner laid down in section 158BB and the provisions of sec ion 142 subsections (2) and (3) of section 143 and section 144, while determining the undisclosed income of the block period. It is thus evident that the procedure clearly contemplates the Assessing Officer giving a hearing to the assessee before making an assessment order in regard to the block period. 4.2 Clause (k) of section 246A provides for an appeal against the order of assessment for the block period made by the Assessing Officer under clause (c) of section 158BC. Sub-section (2) of section 250 provides for a hearing of the appeal. Thus, the assessee is heard by the Assessing Officer before making the assessment order under section 158BC. If the assessee is aggrieved ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sment order or reassessment/block assessment without the prior approval of the officers mentioned in the said sections. The language used in these sections are in the mandatory form which prohibits passing of the order by the assessing officer without prior approval. Meaning thereby if an order is passed without any approval from the authorities mentioned in the respective sections then the order shall be bad in law and would be liable to be declared void being passed in contradiction to these provisions. Moreover these 2 provisions were provided by the legislature for the same purposes i.e., to supervise the functioning of the lower authorities by the higher authorities. The comparative chart of these 2 provisions it is as under : [Prior approval necessary for section 153assessment in cases of search or requisition. 153D. No order of assessment or reassessment shall be passed by an Assessing Officer below the rank of Joint Commissioner in respect of each assessment year referred to in clause (b) of 51[sub-section (1) of] section 153A or the assessment year referred to in clause (b) of subsection (1) of section 153B, except with the prior approval of the Joint ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... icer, then in that eventuality the said approval ceases to be approval in the eyes of law. In our view the approval as envisaged under section 153D of the Act is not empty formality and there is a rational and reason for mandating the approval before passing the assessment order under the Act. If it was merely a formality and the superior authority is not required to apply its mind then there was no reason to incorporate even for approval of the superior authority and it would not have been worded in the mandatory manner. Because the language used in the provision is in the form of mandatory direction therefore it cannot be argued that even if the approval is granted without application of mind then also it is valid in the eyes of law. In our opinion, civil and penal consequences would flow from completion of assessment and therefore if the approval is denied then crystallize right will accrue in favour of the assessee and the assessee will have a right to assert that the assessment made is bad in law. Similarly if the approval is granted without application of mind which is discernible from the record then the said approval loses its character to be approval in the eyes of law. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion (2A) of the Act would show that the opinion of the Assessing Officer that it is necessary to get the accounts of assessee audited by an Accountant has to be formed only by having regard to: (i) the nature and complexity of the accounts of the assessee; and (ii) the interests of the revenue. The word and signifies conjunction and not disjunction. In other words, the twin conditions of nature and complexity of the accounts and the interests of the revenue are the prerequisites for exercise of power under section 142(2A) of the Act. Undoubtedly, the object behind enacting the said provision is to assist the Assessing Officer in framing a correct and proper assessment based on the accounts maintained by the assessee and when he finds the accounts of the assessee to be complex, in order to protect the interests of the revenue, recourse to the said provision can be had. The word complexity used in section 142(2A) is not defined or explained in the Act. As observed in Swadeshi Cotton Mills Co. Ltd. v. CIT [1988] 171 ITR 634 1 (All.), it is a nebulous word. Its dictionary meaning is: The state or quality of being intricate or complex or that is difficult to understand. Howeve ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... under section 142(2A) entails civil consequences because the assessee has to pay substantial fee to the special auditor is knocked off. True it is that the payment of auditor's fee is a major civil consequence, but it cannot be said to be the sole civil or evil consequence flowing from directions under section 142(2A). We are convinced that special audit has an altogether different connotation and implications from the audit under section 44AB. Unlike the compulsory audit under section 44AB, it is not limited to mere production of the books and vouchers before an auditor and verification thereof. It would involve submission of explanation and clarification which may be required by the special auditor on various issues with relevant data, document etc., which, in the normal course, an assessee is required to explain before the Assessing Officer. Therefore, special audit is more or less in the nature of an investigation and in some cases may even turn out to be stigmatic. We are, therefore of the view that even after the obligation to pay auditor's fees and incidental expenses has been taken over by the Central Government, civil consequences would still ensue on the passing ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al hearing in terms of sub-section (3) of section 142 is contemplated, the requirement of natural justice is fully met. Apart from the fact that ordinarily a post-decisional hearing is no substitute for pre-decisional hearing, even from the language of the said provision it is plain that the opportunity of being heard is only in respect of the material gathered on the basis of the audit report submitted under sub-section (2A) and not on the validity of the original order directing the special audit. It is well-settled that the principle audi alteram partem can be excluded only when a statute contemplates a post decisional hearing amounting to a full review of the original order on merit, which, as explained above, is not the case here. 24. The upshot of the entire discussion is that the exercise of power under section 142(2A) of the Act leads to serious civil consequences and, therefore, even in the absence of express provision for affording an opportunity of pre-decisional hearing to an assessee and in the absence of any express provision in section 142(2A) barring the giving of reasonable opportunity to an assessee, the requirement of observance of principles of natural ju ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is satisfied, on the reasons recorded by the Assessing Officer concerned, that it is a fit case for the issue of such notice. These are some in builts safeguards to prevent arbitrary exercise of power by an Assessing Officer to fiddle with the completed assessment . The Hon'ble High Court further observed that what disturbs us more is that even the Additional Commissioner has accorded his approval for action under section 147 mechanically. We feel that if the Additional Commissioner had cared to go through the statement of the said parties, perhaps he would not have granted his approval, which was mandatory in terms of the proviso to sub-section (1) of section 151 of the Act as the action under section 147 was being initiated after the expiry of four years from the end of the relevant assessment year. The power vested in the Commissioner to grant or not to grant approval is coupled with a duty. The Commissioner is required to apply his mind to the proposal put up to him for approval in the light of the material relied upon by the Assessing Officer. The said power cannot be exercised casually and in a routine manner. We are constrained to observe that in the present case there ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Revenue. 4.14. In view of the above we are of the considered opinion if the approval is granted by the superior authorities for extraneous reasons, without application of mind or without looking into the record, then the approval loses its character of an approval in the eyes of law. Accordingly we have no hesitation in declaring that the approval granted by the higher authorities on 27 March 2014 is no approval in the eyes of law and accordingly the assessment made by the assessing officer based on such an approval is also declared to be null and void. In fact, the issue of judicial review of the administrative decision were examined by Hon ble Supreme Court in Tata Celular vs. Union of India (1994) 6SCC 651 (Paragraph 77) and also in the matter of West Bengal Central School Service Commission vs. Abdul Halim, (2019) SCC online (SC) 902. We are bound by the law laid down by the Hon ble Supreme Court in the aforesaid judgment. 4.15. We may mention that in the approval granted by additional Commissioner of income tax on 27 March 2014 it is clearly mentioned that he has not applied its mind and he has not even look into the draft assessment order and he solely relied upo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ack to the assessing officer to pass a fresh assessment order after seeking the approval from the competent authority. In this regard we are of the opinion that the revenue is not entitled to 2nd inning, in the matter as the non grant of approval/grant of approval in a mechanical manner takes out the direction of the assessing officer to pass the assessment order and the same cannot be rectified or improved by the revenue in the 2nd round of litigation. Undoubtedly the assessee is contesting the matter from the date of search before various forms including before the Hon ble High court and the assessee cannot be made to run again for many more years for contesting the litigation. In view of these peculiarity of the facts we are of the opinion that 2nd inning for rectifying or removing the defects cannot be granted to the revenue. 4.18. As we had held that the assessment made by the Assessing Officer was bad in law and the same has been annulled, therefore, the appeals of the Revenue challenging the orders of the ld. CIT(A) are also liable to be dismissed. 5. In the result, the appeals of the assessee are allowed and those of Revenue are dismissed. 11.12. The Order ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... itted for your kind perusal and necessary approval. Sl.No. Name of the assessee PAN Asstt. Years 1. Sh. Sanjay Bansal ACZPB9725A 2007-08 To 2013-2014 2. Uttarakhand Uthan samiti AAAAU1376N 2007-08 To 2013-2014 3. Wali Gram Udhyog sansthan AAAAW1501B 2007-08 To 2013-2014 ; 4. Shri Krishna Educational Trust AAATS 3624 C 2007-08 To 2013-2014 It is requested that approval may kindly be accorded to the draft assessment orders. Yours faithfully, Encl: Case records: Sd/- (Poonam Sharma) Dy. Commissioner of income Tax, Central Circle, Dehradun. 15. We find, Addl.CIT, Central Range, Meerut, granted approval vide letter dated 30th March, 2015, the relevant scanned copy of which reads as under:- OFFICE OF THE ADDL. COMMISSIONER OF INCOME TAX, CENTRAL RANGE, MEERUT F. No. Addl. CIT/CR/MRT/153D/2014-15/1158 Dated: ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2007-08 To 2013-2014 14 Uttarakhand Uthan samiti AAAAU1376N 2007-08 To 2013-2014 15 Wali Gram Udhyog sansthan AAAAW1501B 2007-08 To 2013-2014 16 Shri Krishna Educational Trust AAATS 3624 C 2007-08 To 2013-2014 u/s 153C Sl.No. Name of the assessee PAN Asstt. Years 01 Rama Gautam ADQPA8706L 2007-08 To 2013-2014 02 Mamta Dandriyal AYDPD5055F 2007-08 To 2013-2014 03 Gulzar Ahmed AFGPA7405Q 2007-08 To 2013-2014 04 Sohan lal kala AKMPK8071H 2007-08 To 2013-2014 05 Rishi Raj ANOPS3775M 2007-08 To 2013-2014 3. You are directed to pass necessary orders, as di ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the office of the AO at Dehradun to the office of the Addl.CIT at Meerut who went through the same and has given approval with certain amendments. It is not possible on the part of the Addl.CIT to go through the orders in about more than 100 cases on the very same day and give approval. Even if such approval has been given, it can be said that the same is nothing but a technical formality without application of mind. Further, as mentioned earlier, there is nothing on record to suggest that the files have in fact moved from Dehradun to Meerut for obtaining approval. Therefore, in our opinion, the mandatory provisions as required u/s 153D has not been complied with. 17.1 We find identical issue had come up before the Delhi Bench of the Tribunal in the case of Rishabh Buildwell Pvt Ltd. (supra). The Tribunal, after considering the various decisions, quashed the assessment orders by observing as under :- 11. We have heard the arguments of both the parties and gone through the record and documents filed before us. For ready reference the entire part of the letter of approval dated 30.12.2016 is reproduced as under: Subject: Prior approval u/s 153 D in the cases of Cloud- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... -10 to 2015-16 16 M/s Angel Buildcon Pvt. Ltd. AAFCAI968H 2009-10 to 2015-16 2. A technical approval is accorded to pass assessment orders in the above cases on the basis of the drafts assessment orders submitted for the assessment years in reference years. You are directed to ensure taking into account the seized documents/papers and comments in the appraisal report pertaining to AYs. The fact of initiation of penalty proceedings, wherever, applicable, must also be incorporated in last para of the order. The initiation of correct penalty provisions of I.T. Act u/s 271 (1)(c)/ 271AAB, as per facts of the ease, must be ensured. 3. This office reference no of approving the draft orders shall invariably be quoted in the assessment orders to be passed. A copy of final assessment orders passed in these cases should be sent to this office for record immediately on passing the assessment orders. 4. It must also be ensured that if any document in this case, pertains to any third party assessed with a different AO, the necessary information for taking necessary action must be sent to concerned AO imme ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he judgment of Coordinate Bench in the case of M3M India Holdings (ITA 2691/2018). And the judgment of Hon ble High Court of Bombay in the case of Pr CIT vs. Smt. Shreelekha Damani [ ITA no 668 of 2016 Dated: 27th November, 2018 ] is as under: 1. This appeal is filed by the Revenue challenging the judgment of Income Tax Appellate Tribunal ( the Tribunal for short) dated 19th August, 2015. 2. Following question was argued before us for our consideration:- Whether on the facts and circumstances of the case and in law, the Tribunal was justified in holding that there was no 'application of mind' on the part of the Authority granting approval? 3. Brief facts are that the Tribunal by the impugned judgment set aside the order of the Assessing Officer passed under Section 153A of the Income Tax Act, 1961 ( the Act for short) for Assessment Year 1 of 4 Uday S. Jagtap 668-16-ITXA15=.doc 2007-08. This was on the ground that the mandatory statutory requirement of obtaining an approval of the concerned authority as flowing from Section 153D of the Act, before passing the order of assessment, was not complied with. 4. This was not a case where no approval was g ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r want of time could not examine the issues arising out of the draft order. His action of granting the approval was thus, a mere mechanical exercise accepting the draft order as it is without any independent application of mind on his part. The Tribunal is, therefore, perfectly justified in coming to the conclusion that the approval was invalid in eye of law. We are conscious that the statute does not provide for any format in which the approval must be granted or the approval granted must be recorded. Nevertheless, when the Additional CIT while granting the approval recorded that he did not have enough time to analyze the issues arising out of the draft order, clearly this was a case in which the higher Authority had granted the approval without consideration of relevant issues. Question of validity of the approval goes to the root of the matter and could have been raised at any time. In the result, no question of law arises. 8. Accordingly, the Tax Appeal is dismissed. 15. Hence, keeping in view the facts and circumstances of the case and peculiarities of the instant case, owing to the judgment of the Hon ble High Court, we hereby hold that the assessments completed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ical manner and, therefore, the approval so granted by him is not an approval which can be sustained. Accordingly, assessments in three COs and nineteen appeals of the assessee(s), on identical facts, are liable to be annulled as suffering from the incurable defect of the approval not being proper. Accordingly, we annul the assessment orders in CO Nos, 8 to 10/Jodh/2016 and ITA Nos.325 to 331/Jodh/2016. Thus, all the three Cos and the nineteen appeals of the assessee, as aforesaid are allowed. (emphasis supplied by us) 19. Since the facts of the instant case are identical to the facts of the case cited (supra), therefore, respectfully following the decisions cited above, we hold that there is no proper approval given u/s 153D in the instant case for which the assessment orders passed by the AO are not in accordance with law. We, therefore, have no hesitation in holding that the assessments completed by the DCIT do not stand in the eyes of law and, therefore, these orders are treated as null and void. Accordingly, the orders passed by the AO are annulled and the ground raised by the assessee on this preliminary issue as per grounds of appeal No.4 and 5 are allowed. Since the ass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... essment being framed on basis of invalid approval u/s 153D no longer res integra. The ld. AR relied on the decision of Delhi ITAT in case of M3M India Holdings order dated 15.03.2019 in ITA 2691/Del./2018 , ITAT, Jodhpur Bench in the case of Smt. Indira Bansal vs., ACIT (2018) 192 TTJ 968 (Jodh.) and Cuttack bench ITAT Sri Trinadh Chowdary, IT(S)A No.44 to 46/CTK/2016 27/09/2018. On basis of the ration of the above judgements, it was argued that the additional grounds be admitted on legal and jurisdictional grounds , allow the appeal, and quash the orders passed by Ld AO and Ld CIT(A). 10. The ld. DR argued that as per the Section 153D of the Act, the JCIT has duly approved the assessment orders after going through the draft assessment order given by the Deputy Commissioner of Income Tax, Central Range, Ghaziabad. It was also argued that there was no fix it format for according the approval and from the letter dated 30.12.2016, it can be gauged that approval has been duly given by the JCIT in accordance with the provisions of the Act. 11. We have heard the arguments of both the parties and gone through the record and documents filed before us. For ready reference ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... AACCR9776R 2009-10 to 2015-16 15 Srnt. Magan Jain AAIMPJ8085G 2009-10 to 2015-16 16 M/s Angel Buildcon Pvt. Ltd. AAFCAI968H 2009-10 to 2015-16 2. A technical approval is accorded to pass assessment orders in the above cases on the basis of the drafts assessment orders submitted for the assessment years in reference years. You are directed to ensure taking into account the seized documents / papers and comments in the appraisal report pertaining to AYs. The fact of initiation of penalty proceedings, wherever, applicable, must also be incorporated in last para of the order. The initiation of correct penalty provisions of I.T. Act u/s 271 (1)(c)/ 271AAB, as per facts of the ease, must be ensured. 3. This office reference no of approving the draft orders shall invariably be quoted in the assessment orders to be passed. A copy of final assessment orders passed in these cases should be sent to this office for record immediately on passing the assessment orders. 4. It must also be ensured that if any document in t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... atutory nature after due application of mind, it should be neither technical nor proforma approval which is envisaged u/s 153D of the Act. Reliance is placed the judgment of Coordinate Bench in the case of M3M India Holdings (ITA 2691/2018). And the judgment of Hon'ble High Court of Bombay in the case of Pr CIT vs. Smt. Shreelekha Damani [ ITA no 668 of 2016 Dated: 27th November, 2018 ] is as under: 1. This appeal is filed by the Revenue challenging the judgment of Income Tax Appellate Tribunal ( the Tribunal for short) dated 19th August, 2015. 2. Following question was argued before us for our consideration:- Whether on the facts and circumstances of the case and in law, the Tribunal was justified in holding that there was no 'application of mind' on the part of the Authority granting approval ? 3. Brief facts are that the Tribunal by the impugned judgment set aside the order of the Assessing Officer passed under Section 153A of the Income Tax Act, 1961 ( the Act for short) for Assessment Year 2007-08. This was on the ground that the mandatory statutory requirement of obtaining an approval of the concerned authority as flowing from Section 153D of the A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ore, the order was approved as it was submitted. Clearly, therefore, the Additional CIT for want of time could not examine the issues arising out of the draft order. His action of granting the approval was thus, a mere mechanical exercise accepting the draft order as it is without any independent application of mind on his part. The Tribunal is, therefore, perfectly justified in coming to the conclusion that the approval was invalid in eye of law. We are conscious that the statute does not provide for any format in which the approval must be granted or the approval granted must be recorded. Nevertheless, when the Additional CIT while granting the approval recorded that he did not have enough time to analyze the issues arising out of the draft order, clearly this was a case in which the higher Authority had granted the approval without consideration of relevant issues. Question of validity of the approval goes to the root of the matter and could have been raised at any time. In the result, no question of law arises. 8. Accordingly, the Tax Appeal is dismissed. 15. Hence, keeping in view the facts and circumstances of the case and peculiarities of the instant case, owing ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... forwarded to the JCIT, Range-1, New Delhi at the time of granting approval. Therefore, it is evident that the JCIT being the Approving Authority was neither having seized material nor the appraisal report or other material at the time of granting approval. In the approval under section 153D there is a reference to the A.O. letter only. There is no reference to the seized material or record or notice under section 142 and reply of the assessee and if procedure for its inspection or perusal is there. There is no material considered by the JCIT. Learned Counsel for the Assessee has pointed out that assessee has suffered serious prejudice because of non-application of mind on the part of the JCIT while granting approval under section 153D of the I.T. Act because the A.O. has made several double or triple additions on account of share capital, investments, FDRs purchased, loans, capital gains because these were created out of bank deposits made in the bank accounts of the assessees after the money transferred from the account of M/s. Alfa India. No telescopic benefit have been given as it was out of the source deposited in the bank accounts of the assessees. Netting of the money left h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er interesting aspect that has come to the notice on the basis of various documents submitted for approval as well as request for approval by the A.O. to the JCIT. We make a specific reference to letter dated 29.12.2017 written by ACIT, Central Circle-4, New Delhi, which is placed at page-144 of the PB. This letter Dated 29.12.2017 is a request for obtaining approval under section 153D of the I.T. Act in the case of Shri Rajnish Talwar and family wherein the approval in the case of Shri Rajnish Talwar for A.Ys. 2010-2011 to 2016-2017 is sought for. The A.O. send the draft assessment order along with assessment records of the above named assessee. In paragraph-4 of the letter, A.O. stated as under : It is certified that all issues raised in the appraisal reports have been duly examined with reference to the seized impounded material. 15. Thus, the JCIT acted on certificate given by the A.O. without satisfying himself to the record/seized material etc., The A.O. sent only assessment records to the JCIT for his approval. The identical is fact in the case of all the request for approval made by the A.O. but factual position noted above established that even assessment record ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Orders of the authorities below and quash the assessment orders passed under section 153A of the I.T. Act as well as the impugned appellate Order. Resultantly, all additions are deleted. The additional grounds are allowed. In view of the above findings, the other issues on merits are left with academic discussion only. Accordingly, all the appeals of the Assessees are allowed. 17. In the result, all the appeals of the Assessees are allowed. NOTICE U/S. 150 TO M/s. JAGATJIT INDUSTRIES LTD., 18. Vide Order Dated 21.02.2020 when all the appeals were being heard, notice was issued to M/s. JIL connected with these appeals as to why the direction be not issued while deciding these appeals for reopening entire case under section 147/148 of the I.T. Act for 07 years. Notice was served upon M/s. JIl. Shri R.S. Singhvi, C.A. appearing for M/s. JIL and he has objected to the issue of notice and direction against them. He has also filed written submissions. Shri R.S. Singhvi has submitted that search and seizure operation under section 132 of the I.T. Act was conducted on Jaiswal Group was included assessee company M/s. JIL on 06.05.2014. Further a search action was also under ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... jections raised by Shri R.S. Singhvi, Learned Counsel for the Assessee M/s. JIL, we are of the view that since the Ld. CIT(A) has already allowed the appeals of Assessee and Departmental Appeals are pending before the Tribunal for consideration, therefore, we do not find it appropriate to issue any direction on merit as the same would prejudice the case of the assessee pending before the Tribunal. Further, Learned Counsel for the Assessee has explained that even if directions are issued for reopening of the case, the A.O. shall have to satisfy the requirements of Section 147 of the I.T. Act. Since the Ld. CIT(A) in the case of M/s. JIL already deleted the addition and the matter is subjudice before the Tribunal and we have quashed the substantive assessment orders and appellate Orders in the group cases of Shri Sanjay Duggal and Shri Rajnish Talwar Group of cases on account of invalid approval granted under section 153D of the I.T. Act and findings in this Order, therefore, no purpose would serve in issuing any direction under section 150 of the I.T. Act, 1961 against M/s. JIL. In view of the above, we discharge the notice issued against M/s. JIL. There is no need of further direct ..... X X X X Extracts X X X X X X X X Extracts X X X X
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