NILESH SHAMJI BHARANI,MUMBAI vs. DCIT -CC- 4(1), MUMBAI
Facts
A search and survey action was conducted on 06/10/2017, leading to the issuance of notices under Section 153A of the Act. The assessee filed returns declaring income. The core issue revolved around the validity of the approval granted under Section 153D for the assessment orders, particularly regarding whether it was a mechanical approval or involved due application of mind by the approving authority.
Held
The Tribunal held that the approval granted by the Additional Commissioner of Income-tax was mechanical and against the ratio laid down by various High Courts and the Supreme Court, as it did not demonstrate due application of mind. The approvals were not properly scrutinized and were granted in a perfunctory manner.
Key Issues
Whether the approval granted by the competent authority under Section 153D of the Income Tax Act was mechanical or indicated due application of mind, and if not, whether it vitiates the assessment order.
Sections Cited
153D, 143(3), 153A, 132, 133A, 144BA, 147, 148, 151, 271(1)(c)
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