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TMI Blog2025 (4) TMI 100X X X X Extracts X X X X X X X X Extracts X X X X ..... ed, the assessee is in further appeal before us. 3. The Ld. AR, at the outset, took us through Page No.11 of the paper-book wherein JCIT, Central Range, Kanpur has accorded approval u/s 153D on 29-03-2016 to DCIT, Central Circle, Agra. The Ld. AR raised a pertinent legal ground that a combined approval has been given with respect to two different assessee's and that too for various assessment years viz. AY 2008-09 to 2014-15. The Ld. AR referred to various case laws to support the submission that such a combined approval would vitiate the entire assessment proceedings since the same are deemed to be given in a mechanical manner. The Ld. CIT-DR controverted the same and contended that the approval was given with due application of mind. 4. We are of the opinion that this legal issue stood covered in assessee's favor by the decision of jurisdictional High Court in the case of CIT vs. Subodh Agarwal (149 Taxmann.com 373) wherein the substantive findings of Hon'ble Court was as under: - 9. Considering the submissions of the learned counsel for the parties and having perused the order of the Tribunal, in view of the undisputed facts before us about the manner in which the approval t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r 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 v. Land Acquisition Officer (2003) 5 SCC83 wherein the distinction between Approving Authority and Appellate Authority was drawn, had been noted. The decision of the High Court of Gauhati in Dharampal Satyapal Ltd. v. Union of India [2019] 366 ELT 253 has been noted to record that grant of approval means due application of mind on the subject matter approved which satisfies all the legal and procedural requirements. There is an exhaustive discussion on the requirement of prior approval under section 153D of the Act and it was noted that the requirement of approval cannot be treated as mere formality and the mandate of the Act that the Approving Authority has to act in a judicious manner by due application of mind in a manner of a quasi judicial authority, has been considered. 12. It was held therein that if an approval has been gr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... se is employed in the text of section 153D, which is "each assessment year". The reading of the provisions in section 153A and 153Dconjointly 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 sections 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 Sahara India(Firm) v. CIT [2008] 169 Taxman 328/300 ITR 403where the discussion on the requirement of prior approval of Chief Commissioner or Commissioner in terms of provision of section 142(2A) of the Act had been made, it was noted that the Apex Court has held therein that the requirement of previous approval of the Chief Commissioner or Commissioner in terms of the said provision being an in-built protection against arbitrary or unjust exercise of power by the Assessing Officer casts a very heavy duty on the said high ranking authority to see that the approval envisaged in the section is not turned into an empty ritual. The Apex Court has held therein that the approval must be gran ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 year or years). 19. The careful and conjoint reading of section 153A(1) and section 153D leave no room for doubt that approval with respect to "each assessment year" is to be obtained by the Assessing Officer on the draft assessment order before passing the assessment order under section 153A. 20. In the instant case, the draft assessment order in 38 cases, i.e. for 38 assessment years placed before the Approving Authority on 31-12-2017 was approved on same day i.e. 31-12-2017, which not only included the cases of respondent-assessee but the cases of other groups as well. It is humanly impossible to go through the records of 38 cases in one day to apply independent mind to appraise the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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