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TMI Blog2024 (6) TMI 1293X X X X Extracts X X X X X X X X Extracts X X X X ..... ation of assessment proceedings and issue/ services of notices are not in accordance with the provisions of law and accordingly the assessment order passed on the foundation of such notice(s) is liable to be quashed and the CITTA) erred in not holding so. 2 On the facts and circumstances of the case and in law, the addition of Rs 12,35,18,351/- made by the assessing officer on account of alleged unexplained cash credit u/s. 68 of the Income Tax Act 1901 beyond the scope/jurisdiction of provisions of section 153A of the Income Tax Act, 1961 and CIT(A) erred in not holding so. 3. On the facts and circumstances of the case and in law, the CIT(A) erred in confirming addition Rs. 12,35,18,554/- made by the assessing officer on account of alleged unexplained cash credit u/s 68 of the Income Tax Act, 1961. 4. On the facts and circumstances of the case and in law, the various alleged adverse inference drawn/reasons given by the assessing officer / CIT(A) for making/ confirming addition are erroneous and not sustainable in law. 5. On the facts and circumstances of the case and in law, the assessment order passed by the assessing officer is contrary to the provisions of section ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g, AAHPG8132G 2009-10 to 2015-16 8 M/s Apple Industries Ltd., AAGCA9960N 2009-10 to 2015-16 9 M/s Nirman Stelco Pvt. Ltd., AACCN4842Q 2009-10 to 2015-16 10 M/s M.G. Mettalloy Pvt. Ltd., AAGCM5789D 2011-12 to 2015-16 11 M/s Promart Retail India Pvt. Ltd. AAFCP8743B 2009-10 to 2015-16 12 M/s Apple Sponge & Power. Limit. AAFCA1965L 2009-10 to 2015-16 13 M/s Apple Metal Industries Ltd., AAACD7670E 2009-10 to 2015-16 14 M/s Apple Buildtech Ltd., AAFCA8106K 2009-10 to 2015-16 15 M/s Apple Insurance Brokers Pvt. Ltd., AAECA5320N 2009-10 to 2015-16 16 M/s Zync Global Pvt. Ltd., AAACZ5235H 2012-13 to 2015-16 17 M/s Apple Iron Enterprises Pvt. Ltd., AAHCA8642G 2010-11 to 2013-14 18 M/S Mastermind Trade-in-Private Ltd AAECM9435E 2009-10 to 2015-16 Draft assessment order received Late i.e. on 31/12/2016 Yours sincerely Beyond the time as per internal Action Plan. And thus having a very little time/ almost no time for proper &nbs ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... afts 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 the last para of the order. The initiation of correct penalty provisions of I.T. Act u/s271 (I)(c)/271AAB per facts of the case must be ensured 4. 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 should sent to this office for record immediately on passing the assessment orders. 5. 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 immediately. Encl.: As above sd Joint Commissioner of Income Tax Central Range, Meerut 1.4. From the above, it is apparent that the JCIT received the draft assessment order from the AO on 31/12/2016 and he granted the approval on the same day. In the letter of the A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssions and submitted that the approval was granted by following proper approval process and he stressed that the approval is only an internal arrangement and submitted that the approval granted by JCIT is proper. 7. Considered the rival submissions and material placed on record, we observed that the approval granted by DCIT, Central Circle, Noida dated 30/12/2016 in which the approval granted u/s 153 of the Income Tax Act ('the Act' for short) were granted to the eighteen assessees including the case of the assessee. Letter granting of such approval is placed on record at page-2 of the Paper Book. In the case of M.G. Metolloy Pvt. Ltd vs. DCIT, Central Circle- Noida, 2023 (10) TMI 686 (ITAT, Delhi), is one of the assessee, who was also granted approval by the same letter dated 30/12/2016. In the case of M.G. Metalloy Pvt. Ltd. (supra), the Co-ordinate Bench in ITA No.3693/Del/2018 dated 08/05/2023 held as under:- "9.5 In the instant case, it is a matter of record by the own admission of JCIT that the approval granted is merely technical and without appraisal of evidences or enquiries. Thus fact thus need not be traversed any further. In the backdrop of the unequivocal observatio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... spect of search related assessment and thus enjoins a salutary duty of statutory nature. The designated superior authority is thus expected to confirm to the statutory requirements in letter and spirit. As noted in the preceding paragraphs, it is a classic case of collective abdication of statutory responsibility assigned under Act and yet putting civil consequences of onerous nature on a tax payer. It is axiomatic from the plain reading of approval memo that the JCIT is in complete dark on facts while being called upon to grant his clearance to the draft assessment orders. It is evident from the CBDT Circular No. 3 of 2008 dated 12.03.2008 that the legislature in its highest wisdom made it obligatory that the assessments of search cases should be made with the prior approval of superior authority, so that the superior authority apply their mind on the materials and other attending circumstances on the basis of which the Assessing officer is making the assessment and after due application of mind and on the basis of seized materials, the superior authority is required to accord approval the respective Assessment order. The solemn object of entrusting the duty of Approval of assessm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... order dated 23-08-2021 concerning other AY 2015-16 where co-ordinate bench found total lack of propriety in such statutory approval. There are plethora of decisions of various co-ordinate benches including Sanjay Duggal & ors (ITA 1813/Del/2019 & ors; order dated 19.01.2021 which have also echoed the same view on similar fact situation. 13. The CIT(A) in para 7 of first appellate order has brushed aside the legal objection summarily merely on an inept & indifferent premise that the assessment order makes mention of the approval from JCIT under 153D of the Act. The cryptic conclusion drawn by the CIT(A) is bereft of any reasons whatsoever and thus cannot be reckoned to be a judicial finding on the point. The observations so made are not tenable in law. 14. In the light of foregoing discussions, We are unhesitatingly disposed to hold that the assessment order for AY 2014-15 in question, in pursuance of a hollow & cosmetic approval accorded under S. 153D and undeniably without application of mind, is rendered unenforceable in law and hence quashed. 15. In view of legal objection answered in favour of the Assessee, the aspects of other objections on jurisdiction or merits of add ..... X X X X Extracts X X X X X X X X Extracts X X X X
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