NILESH SHAMJI BHARANI,MUMBAI vs. DCIT -CC- 4(1), MUMBAI
Facts
A search and survey action was conducted, leading to the issuance of notices under Section 153A of the Income Tax Act. The assessee filed returns declaring income. The core issue revolves around the validity of the approval granted by the competent authority under Section 153D of the Act for the assessment orders. The approval was granted via a single letter for multiple assessment years and assessees.
Held
The Court held that the approval granted by the Additional Commissioner of Income-tax was mechanical and against the ratio laid down by the High Court. The approval process must involve an independent application of mind and not be a mere rubber-stamping exercise. The approval was found to be lacking in indicating that the approving authority had examined the draft orders and found them to meet the requirements of law.
Key Issues
Whether the approval granted under Section 153D of the Income Tax Act was mechanical and lacked due application of mind, thus vitiating the assessment orders.
Sections Cited
153D, 153A, 143(3), 132, 133A, 147, 151, 148, 271 (1) (c), 158BG, 144BA, 142(2A)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, “B” BENCH, MUMBAI
Before: SHRI SAKTIJIT DEY, HON’BLE & SHRI NARENDRA KUMAR BILLAIYA, HON’BLE
आदेश की �ितिलिप अ�ेिषत /Copy of the Order forwarded to : अपीलाथ� / The Appellant 1. ��थ� / The Respondent 2. संबंिधत आयकर आयु� / Concerned Pr. CIT 3. 4. आयकर आयु� अपील ( ) / The CIT(A)- िवभागीय �ितिनिध ,आयकर अपीलीय अिधकरण, मुंबई /DR,ITAT, Mumbai, 5. गाड� फाई/ Guard file. 6.
आदेशानुसार/ BY ORDER, TRUE COPY
Assistant Registrar आयकर अपीलीय अिधकरण ITAT, Mumbai