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TMI Blog2025 (2) TMI 1028X X X X Extracts X X X X X X X X Extracts X X X X ..... nal ground now raised is purely a legal ground and goes to the root of the matter thus the same may be admitted and adjudicated first. He placed reliance on the decision of Hon'ble Supreme court in the case of NTPC Ltd. reported in 229 ITR 383 (SC) and also on other judgements of various high courts. After considering the submission and looking to the nature of additional ground raised by the assessee, we find that in this ground the assessee has challenged the legality of approval granted by the Adl. CIT in terms of section 153D which is purely a legal ground and requires no further verification. Thus, in the interest of justice and in view of the ratio laid down by the Hon'ble Supreme court in the case of NTPC Ltd. (supra), the same is admitted and taken up for adjudication first. 4. It was submitted by the ld. AR that the assessee is challenging the assessment order on the technical ground in respect of approval granted u/s. 153D of the Act by the Addl. CIT. It was the submission that the approval granted u/s. 153D of the Act by the ld. Addl. CIT. The ld. AR drew our attention to copy of the approval granted by the ld. Addl. CIT on 24.3.2014 as filed by the assessee along with ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e approval for various assessment years and for five different assessee's was granted by a single order. He placed reliance on the judgement of Hon'ble Jurisdictional High Court in the case of PCIT Vs. Shiv Kumar Nayyar in ITA No. 285/2024 wherein the Hon'ble jurisdictional high court vide order dt. 15.05.24 in para 09-18 has held as follows: 9. We have heard the learned counsels appearing on behalf of the parties and perused the record. 10. Before embarking upon the analysis of the factual scenario of the instant appeal, we deem it apposite to examine the underlying intent of the relevant provision of the Act i.e., Section 153D, which is culled out as under:- "153-D. Prior approval necessary for assessment in cases or requisition.--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 [sub-section (1) of Section 153-A] or the assessment year referred to in clause (b) of sub-section (1) of Section 153-B, except with the prior approval of the Joint Commissioner : Provided that nothing contained in this section shall apply where the assessment or reass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d that the Court in the case of Sapna Gupta (supra) refused to interdict the order of the ITAT, which had held that the approval under Section 153D of the Act therein was granted without any independent application of mind. The Court took a view that the approving authority had wielded the power to accord approval mechanically, inasmuch as, it was humanly impossible for the said authority to have perused and appraised the records of 85 cases in a single day. It was explicitly held that the authority granting approval has to apply its mind for "each assessment year" for "each assessee" separately. 13. Reliance can also be placed upon the decision of the Orissa High Court in the case of Asst. CIT v. Serajuddin and Co. [2023 SCC Online Ori 992] to understand the exposition of law on the issue at hand. Paragraph no.22 of the said decision reads as under:- "22. As rightly pointed out by learned counsel for the assessee there is not even a token mention of the draft orders having been perused by the Additional Commissioner of Income-tax. The letter simply grants an approval. In other words, even the bare minimum requirement of the approving authority having to indicate what the thoug ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of draft assessment order u/s 153D of the Act. The ld. Addl. CIT has accorded approval for the said draft assessment orders on the very same day i.e., on 30.12.2018 for seven assessment years in the case of the assessee and for seven assessment years in the case of Smt. Neetu Nayyar. It is also pertinent in this regard to refer to pages 68 and 69 of the paper book which contains information obtained by Smt. Neetu Nayyar from Central Public Information Officer who is none other than the ld. Addl. Commissioner of Income-tax, Central Range-S, New Delhi, under Right to Information Act, wherein, it reveals that the ld. Addl. CIT had granted approval for 43 cases on 30.12.2018 itself. This fact is not in dispute before us. Of these 43 cases, as evident from page 36 of the paper book which contains the approval u/s 153D, 14 cases pertained to the assessee herein and Smt. Neetu Nayyar. The remaining cases may belong to some other assessee's, which information is not available before us. In any event, whether it is humanly possible for an approving authority like ld. Addl. CIT to grant judicious approval u/s 153D of the Act for 43 cases on a single day is the subject matter of dispute befor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the impugned year was the search year. It was the submission that the Addl. CIT has gone through the assessment records available before him in the case. It was the submission that the Addl. JCIT has applied his mind before making the approval and the same is liable to be upheld. 7. We have considered the rival submissions. In the instant case from the perusal of the approval it is seen that the approval was granted conditionally with certain directions. The approval so given has been reproduced herein above. Another aspect which needs to be considered is that the AO in the instant case is at Dehradun and the Addl. CIT who has granted approval is form Central Range, Meerut thus for obtaining the approval entire records needs to be carried to Meerut from Dehradun and the Addl. CIT has to examine all the material including the assessment folders, appraisal report and seized material before granting the approval which cannot be humanly possible in such a short period of time of few days. As mentioned earlier by the ld. AR that there are 35 cases in this group. It is surprising that Addl. CIT has been able to go through the assessment orders, appraisal reports and other related materi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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