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TMI Blog2022 (12) TMI 887X X X X Extracts X X X X X X X X Extracts X X X X ..... r Section 153A of the Act for the aforesaid assessment year on 12.07.2017 which was originally e-filed on Form ITR-2 on 19.08.2016. The assessment in this case was completed under Section 153A/143(3) of the Act by Dy. C.I.T., Central Circle-1, Kanpur vide order dated 31.12.2017 and various additions were made. It was submitted by the assessee that in search cases, the Assessing Officer before passing the assessment order, framed under Section 153A, 153C and 143(3), is required to take approval from the Joint C.I.T. under Section 153D of the Act, if the Assessing Officer is below the rank of Joint C.I.T. For the purpose of approval, the Approving Authority is required to see all search material including incriminating material, seized documents, appraisal reports, enquiries made by the investigation wing and various enquiries made by the Assessing Officer during the assessment proceedings and the reply submitted by the assessee, and after due application of mind and ascertaining that the Assessing Officer has appreciated the search material and other evidences in proper perspective, has to give approval to the draft assessment order and only on such approval, the Assessing Officer ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aw Dictionary, 6th Edition has been noted therein and with reference to the decision of the Apex Court in Ashok Kumar Sahu Vs. Union of India AIR 2006 SC 2879, it was observed therein that when the power of approval is rested in a higher authority and such higher authority approves an order of the lower authority, it means that he has gone through the order of the lower authority. The previous approval means, an act of confirming, ratifying, assenting, sanctioning or consenting to the Act or thing done by another/lower authority. The word "approval", in the context of an administrative act, does not mean anything more than the aforesaid acts. The submission, thus, is that considering the meaning of "approval" in the context of an administrative act, the consent/confirmation of the draft assessment order by the Approving Authority is good and sufficient exercise of power, for the purpose intended under the Act and was not subject to scrutiny by the Tribunal. The arguments, thus, is that the Tribunal had committed an illegality in quashing the assessment order on the premise that the act of approval was a mechanical exercise of power under Section 153D of the Act which vitiated the e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he 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 may be, is required to be passed by the Assessing Officer with the prior approval of the [Principal Commissioner or] Commissioner under sub-section (12) of section 144BA. The Tribunal while quashing the assessment order had relied upon its earlier decision in Navin Jain and Others (Supra) wherein a detailed discussion has been made with regard to the requirement of prior approval of superior authority on the draft assessment order under Section 153D, before passing the assessment order by the Assessing Officer. It was noted that the word 'approval' though has not been defined in the Income Tax Act but the general meaning of the word 'approval' in Black's Law Dictionary, 6th Edition was to be seen. The decision of the Apex Court in Vijayadevi Naval Kishore Bharatia vs. Land Acquisition Officer (2003) 5 SCC 83 wherein the distinction between Approving Authority and Appellate Authority was drawn, had been noted ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al has further noted that the provisions contained in Sections 153A to Section 153D provide for separate notice to be given to assessee for assessment for each year as specified in Section 153A of the Act; the assessee has to file separate ITR for each year as specified in Section 153A of the Act; separate assessment orders are to be passed for each year as specified in Section 153A of the Act. It was observed that this is an important concept mentioned in Section 153A of the Act, which is peculiar to the scheme of the said Section. Keeping in view of this basic fundamental features of Section 153A, if Section 153D is scrutinized, then, it would become manifest that an important phrase is employed in the text of Section 153D, which is "each assessment year". The reading of the provisions in Section 153A and 153D conjointly makes it clear that separate approval of draft assessment order for each year is to be obtained under Section 153D of the Income Tax Act. In its erudite judgement with the discussion on the legislative intent of Section 153A to 153D and the meaning of the "approval" as defined in Black's Law Dictionary as also the decisions of the Apex Court in the case of S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at the entire material has been examined by the Assessing Authority before preparing the draft assessment order. It is trite in law that the approval must be granted only on the basis of material available on record and the approval must reflect the application of mind to the facts of the case. The requirement of approval under Section 153D is pre-requisite to pass an order of assessment or re-assessment. Section 153D requires that the Assessing Officer shall obtain prior approval of the Joint Commissioner in respect of "each assessment year" referred to in Clause (b) of sub-section (1) of Section 153A which provides for assessment in case of search under Section 132. Section 153A(1)(a) requires that the assessee on a notice issued to him by the Assessing Officer would be required to furnish the return of income in respect of "each assessment year" falling within six assessment years (and for the relevant assessment year or years), referred to in Clause (b) of sub-section (1) of Section 153A. The proviso to Section 153A further provides for assessment of the total income in respect of each assessment year falling within such six assessment years (and for the relevant assessment ye ..... X X X X Extracts X X X X X X X X Extracts X X X X
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