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Facts
These four appeals by the assesses are directed against the separate order of the Commissioner of Income Tax, Appeal CIT (A), Udaipur-2. The assessee has raised common issues on similar facts, except for variations in quantum additions. A key ground of appeal challenges the validity of assessment orders passed under Section 153A of the Act, arguing they were made without the requisite approval under Section 153D.
Held
The Tribunal held that the approval under Section 153D of the Act is a mandatory requirement and cannot be granted mechanically without application of mind. The Addl. CIT's approval was found to be a hollow approval, lacking objectivity and proper consideration of the case material, rendering the assessment orders illegal and void ab initio.
Key Issues
1. Whether the assessment orders passed under Section 153A of the Act are valid without requisite approval under Section 153D. 2. Whether additions made based on seized excel sheets, without corroborative evidence and proper inquiry, are justified.
Sections Cited
153A, 153D, 44AD, 69A, 115BBE, 69C, 43CA
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Income Tax Appellate Tribunal, JODHPUR BENCH (Virtual
Before: DR. MITHA LAL MEENA, HONʼBLE & DR. S. SEETHALAKSHMI, HONʼBLE
These four appeals by the assesses are directed against the separate order of the Commissioner of Income Tax, Appeal CIT (A), Udaipur-2 (hereinafter referred to as the "CIT appeal"). These appeals were interlinked to each other on similar facts and therefore, these were heard together and adjudicated by this consolidated order for sake of brevity.
The assessee has raised common issue son similar facts except variation in quantum addition in all the form of appeal in ITA Nos. ITA No. 903/Jodh/2024 (Α.Υ. 2018-19); ITA No. 904/Jodh/2024 (Α.Υ. 2019-20); ITA No. 916/Jodh/2024 (Α.Υ. 2017-18) and ITA No. 915/Jodh/2024 Assessment Year 2017-18 the assesse taken common grounds of appeal except and therefore grounds of appeal are extracted from ITA No. 903/Jodh/2024 in respect with Assessment Year 2018-19 as a lead case for discussion and finding which reads as under:
The CIT(A) erred in law and on facts in confirming the assessment order passed u/s 153A of the Act ignoring that the said order was passed without requisite approval warranted u/s 153D of the Act and therefore bad in law. Thus, the assessment order so framed ignoring the provisions of the law should be quashed.
The CIT(A) erred in law and on facts in confirming the addition of Rss for alleged on money received on sale of property made merely on presumptions and surmises on the basis of a excel sheet seized during the course of search (a) ignoring that the seized excel sheet was a dumb document and mentioned some rough estimates/ projections calculation and did not contain any actual figures which has been ignored while framing the assessment order for assessment year 2017-18 (b) without bringing any corroborative evidence on record to suggest that the assessee received any on money (c) without making any inquiries from the buyers in this regard (d) by picking and choosing figures from two different seized documents as per convenience, (e) ignoring that Id. AO confirmed in remand report that no enquiry has been made from buyer of the House, (f) ignoring that Id. AO confirmed in remand report that no addition has been made in the hands of the buyer towards alleged on Money, (g) ignoring the registered sale deeds and valuation reports of the sub-