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“mechanical approval”

ReassessmentSection 151Section 1511,395 judgments

The decision most relied on for mechanical approval is PCIT v. Shiv Kumar Nayyar (163 Taxmann.com 9), cited in 597 judgments on BharatTax.

Leading authorities on mechanical approval

PCIT v. Shiv Kumar Nayyar
163 Taxmann.com 9 · 2024 · High Court
597
citing judgments

Approval under Section 153D for search assessments is invalid if granted mechanically, hastily, or without due application of mind, such as on the same day as the proposal or in a bunched manner. Such an invalid approval renders the consequential assessment order under Section 153A void ab initio.

CIT v. S. Goyanka Lime & Chemical Ltd.
64 Taxmann.com 313 · 2015 · Supreme Court
340
citing judgments

A mechanical approval by the prescribed authority under Section 151, made without independent application of mind, vitiates and renders the entire reassessment proceedings invalid. Such approvals, often indicated by brief, unreasoned endorsements, lead to the quashing of the reopening of assessment.

ACIT v. Sirajuddin& Co.
150 Taxmann.com 146 · 2023 · High Court
288
citing judgments

An approval under Section 153D of the Income Tax Act must demonstrate that the approving authority applied its mind to the draft assessment order, and a perfunctory or mechanical approval invalidates subsequent adjustments.

Shreelekha Damani v. DCIT
173 TTJ 332 · 2015 · ITAT
236
citing judgments

Approval granted by a superior authority under Section 153D in a mechanical or perfunctory manner, without proper application of mind, lacks legal sanctity and renders the subsequent assessment order null and void.

Principal Commissioner of Income-tax v. Subodh Agarwal
149 Taxmann.com 373 · 2023 · High Court
194
citing judgments

Approval of draft assessment orders under Section 153D must be granted with due application of mind, not mechanically. Approving multiple cases, such as 38 in a single day, without proper scrutiny amounts to mechanical approval, rendering the assessment invalid.

Madhya Pradesh in CIT v. S. Goyanka Lime & Chemicals Ltd.
56 Taxmann.com 390 · 2015 · High Court
188
citing judgments

A sanction for issuing a notice under section 148 is invalid if the sanctioning authority grants approval mechanically, merely recording 'Yes, I am satisfied' without proper application of mind to the reasons for reassessment. The authority must demonstrate proper consideration to fulfill the statutory obligation under section 151.

PCIT v. Anuj Bansal
165 Taxmann.com 2 · 2024 · High Court
181
citing judgments

An approval under Section 153D of the Income Tax Act, 1961, is considered mechanical and invalid if granted without application of mind and without perusing relevant assessment records, including seized material. This principle has been affirmed by multiple High Courts and the Supreme Court.

Vijayadevi Naval Kishore Bharatia v. Land Acquisition Officer
5 SCC 83 · 2003 · Supreme Court
167
citing judgments

Statutory approvals required under the Income Tax Act, particularly for assessments, must reflect a genuine application of mind by the approving authority and cannot be mechanical or granted without due consideration.

Judgments citing mechanical approval

V C Granites, Ajmer vs. DCIT Central Circle Ajmer, Ajmer

In the result, appeal of the assessee is allowed

ITA 127/JPR/2023[2020-2021]Status: DisposedITAT Jaipur05 Jul 2023AY 2020-2021

Bench: SHRI SANDEEP GOSAIN (Judicial Member), SHRI RATHOD KAMLESH JAYANTBHAI (Accountant Member)

For Appellant: Shri C.M. Agarwal (CA)For Respondent: Shri James Kurian (CIT)
Section 115BSection 143(2)Section 143(3)Section 144Section 153CSection 153DSection 250Section 69A

permissible under law, can only be passed u/s 144 of the Income Tax Act and not u/s 143(3) of the Act. Submission on mechanical approval by the Additional Commissioner of Income Tax U/s 153D of the Income Tax Act. The humble appellant submit that the approval given ... ACIT, Circle-1(2), Bhubaneswar Versus M/s. Serajuddin & Co. Kolkata upheld the decision of the Hon’ble Tribunal of quashing the assessment based on mechanical approval of the Addl CIT. Some of the observations of the Hon’ble High Court are extracted below: “Para 12. It must be noted

Mahalaxmi Ornaments House Pvt. Ltd., New Delhi vs. ITO, Ward-16(1), New Delhi

In the result, all three captioned appeals are allowed on legal grounds

ITA 2233/DEL/2022[2011-12]Status: DisposedITAT Delhi16 Jun 2023AY 2011-12

Bench: Shri Chandra Mohan Garg

For Appellant: Shri Raj Kumar Gupta, CAFor Respondent: Shri Om Prakash, Sr. DR

Sec.147. The Hon' ble Court held approval given on the basis of Sec. 147 is a case of non application of mind and mechanical approval. VRC Township Pvt. Ltd. Vs. ITO ITA. No.1503/Del./2017 Dtd.14.10.20 (Issue discussed in Para-6.1, findings in Para-6.4 of decision) In this case ... Sec.147. The Hon' ble Court held approval given on the basis of Sec. 147 is a case of non application of mind and mechanical approval. Similar view has also been taken by the coordinate benches of the Tribunal in the orders in the cases of VRC Township

Mahalaxmi Ornaments House Pvt. Ltd., New Delhi vs. ITO, Ward-16(1), New Delhi

In the result, all three captioned appeals are allowed on legal grounds

ITA 2232/DEL/2022[2010-11]Status: DisposedITAT Delhi16 Jun 2023AY 2010-11

Bench: Shri Chandra Mohan Garg

For Appellant: Shri Raj Kumar Gupta, CAFor Respondent: Shri Om Prakash, Sr. DR

Sec.147. The Hon' ble Court held approval given on the basis of Sec. 147 is a case of non application of mind and mechanical approval. VRC Township Pvt. Ltd. Vs. ITO ITA. No.1503/Del./2017 Dtd.14.10.20 (Issue discussed in Para-6.1, findings in Para-6.4 of decision) In this case ... Sec.147. The Hon' ble Court held approval given on the basis of Sec. 147 is a case of non application of mind and mechanical approval. Similar view has also been taken by the coordinate benches of the Tribunal in the orders in the cases of VRC Township

Mahalaxmi Ornaments House Pvt. Ltd., New Delhi vs. ITO, Ward-16(1), New Delhi

In the result, all three captioned appeals are allowed on legal grounds

ITA 2231/DEL/2022[2009-10]Status: DisposedITAT Delhi16 Jun 2023AY 2009-10

Bench: Shri Chandra Mohan Garg

For Appellant: Shri Raj Kumar Gupta, CAFor Respondent: Shri Om Prakash, Sr. DR

Sec.147. The Hon' ble Court held approval given on the basis of Sec. 147 is a case of non application of mind and mechanical approval. VRC Township Pvt. Ltd. Vs. ITO ITA. No.1503/Del./2017 Dtd.14.10.20 (Issue discussed in Para-6.1, findings in Para-6.4 of decision) In this case ... Sec.147. The Hon' ble Court held approval given on the basis of Sec. 147 is a case of non application of mind and mechanical approval. Similar view has also been taken by the coordinate benches of the Tribunal in the orders in the cases of VRC Township

Emm Aar Tourism Pvt Ltd, New Delhi vs. ITO Ward - 8(2), New Delhi

In the result, the appeal of the assessee partly allowed

ITA 5790/DEL/2019[2010-11]Status: DisposedITAT Delhi16 Jun 2023AY 2010-11

Bench: Shri Chandra Mohan Garg & Shri M. Balaganeshassessment Year: 2010-11 Emm Aar Tourism P. Ltd. Ito Ward 8(2), New Delhi 10685, Jhandewalan Road, Nabi Karim, New Delhi 110055 Vs. Pan Aacce 1918 Q (Appellant) (Respondent) For Assessee : Shri Shikar Garg, Ca Shri Manoj Garg, Ca Revenue For : Shri Vipul Kashyap, Sr. Dr Date Of Hearing : 19.04.2023 Date Of Pronouncement : 16.06.2023 Order Per Chandra Mohan Garg, J.M. This Appeal Has Been Filed Against The Order Of Ld. Cit(A)-24 New Delhi Dated 11.04.2019 For Ay 2010-11. 2. The Sole Legal Ground Of Assessee Is As Follows:- 1. That On The Facts & Circumstances Of The Case, The Ld Cit(A) Erred In Confirming The Action Of Ld. Ao For Initiation Of Reassessment Proceedings U/S. 147/148 Of The Income Tax Act. 3. The Ld. Assessee Representative Submitted That For Ay 2010-11 The Assessee Submitted Return Of Income On 25.09.2010 Declaring Loss Of Rs. 46,894/- Which Was Processed U/S. 143(3) Of The Act. Drawing Our Attention Towards Pages 27 To 32 Of Assessee Paper Book The Ld. Ar Submitted That The Assessing Officer Received Information From The Investigation Wing Which Conducted Search & Seizure Operation On 18.11.2015 On Pradeep Kumar Jindal Group. He Further Elaborated That On Receipt Of Information The Assessing Officer Recorded Reasons For Initiated Of Reassessment Proceedings On 29.03.2017 & Obtained Approval Of Acit As Well As Pcit On The Very Same Date. The Ld. Ar Drawing Our Attention Towards Page 28 Of The Approval Note Submitted That The Ld. Acit While Granting Approval Noted “Yes, It Is A Fit Case” & The 1

For Appellant: Shri Shikar Garg, CA
Section 143(3)Section 147Section 148Section 151

entries, quashed the reassessment on the ground that AO has not applied his judicial mind independently [4] and that ld. Principal CIT has accorded mechanical approval by merely writing words that “Yes, I am satisfied.” without applying his judicial mind by returning following findings :- “10. First

M/S Narula Foods Private Limited, Ferozepur vs. Deputy Commissioner of Income Tax Central Circle, Amritsar

In the result, the appeals of the revenue are dismissed and appeals of assessee are allowed in the terms indicated above

ITA 80/ASR/2020[2014-15]Status: DisposedITAT Amritsar09 Jun 2023AY 2014-15

Bench: Dr. M. L. Meena & Sh. Anikesh Banerjee

Section 144Section 250(6)

specific issues are originated from the appeal. First issue is the challenging the jurisdiction of assessment u/s 153A and the grievance related mechanical approval u/s 153D by revenue. The ld. AR had not specifically taken the grounds related to mechanical section 153D. But the assessee was agitated before the bench

M/S Narula Foods Private Limited, Ferozepur vs. Deputy Commissioner of Income Tax Central Circle, Amritsar

In the result, the appeals of the revenue are dismissed and appeals of assessee are allowed in the terms indicated above

ITA 79/ASR/2020[2013-14]Status: DisposedITAT Amritsar09 Jun 2023AY 2013-14

Bench: Dr. M. L. Meena & Sh. Anikesh Banerjee

Section 144Section 250(6)

specific issues are originated from the appeal. First issue is the challenging the jurisdiction of assessment u/s 153A and the grievance related mechanical approval u/s 153D by revenue. The ld. AR had not specifically taken the grounds related to mechanical section 153D. But the assessee was agitated before the bench

M/S Narula Foods Private Limited, Ferozepur vs. Deputy Commissioner of Income Tax Central Circle, Amritsar

In the result, the appeals of the revenue are dismissed and appeals of assessee are allowed in the terms indicated above

ITA 78/ASR/2020[2012-13]Status: DisposedITAT Amritsar09 Jun 2023AY 2012-13

Bench: Dr. M. L. Meena & Sh. Anikesh Banerjee

Section 144Section 250(6)

specific issues are originated from the appeal. First issue is the challenging the jurisdiction of assessment u/s 153A and the grievance related mechanical approval u/s 153D by revenue. The ld. AR had not specifically taken the grounds related to mechanical section 153D. But the assessee was agitated before the bench

M/S Narula Foods Private Limited, Ferozepur vs. Deputy Commissioner of Income Tax Central Circle, Amritsar

In the result, the appeals of the revenue are dismissed and appeals of assessee are allowed in the terms indicated above

ITA 77/ASR/2020[2011-12]Status: DisposedITAT Amritsar09 Jun 2023AY 2011-12

Bench: Dr. M. L. Meena & Sh. Anikesh Banerjee

Section 144Section 250(6)

specific issues are originated from the appeal. First issue is the challenging the jurisdiction of assessment u/s 153A and the grievance related mechanical approval u/s 153D by revenue. The ld. AR had not specifically taken the grounds related to mechanical section 153D. But the assessee was agitated before the bench

M/S Narula Foods Private Limited, Ferozepur vs. Deputy Commissioner of Income Tax Central Circle, Amritsar

In the result, the appeals of the revenue are dismissed and appeals of assessee are allowed in the terms indicated above

ITA 76/ASR/2020[2010-11]Status: DisposedITAT Amritsar09 Jun 2023AY 2010-11

Bench: Dr. M. L. Meena & Sh. Anikesh Banerjee

Section 144Section 250(6)

specific issues are originated from the appeal. First issue is the challenging the jurisdiction of assessment u/s 153A and the grievance related mechanical approval u/s 153D by revenue. The ld. AR had not specifically taken the grounds related to mechanical section 153D. But the assessee was agitated before the bench

M/S Narula Foods Private Limited, Ferozepur vs. Deputy Commissioner of Income Tax Central Circle, Amritsar

In the result, the appeals of the revenue are dismissed and appeals of assessee are allowed in the terms indicated above

ITA 75/ASR/2020[2009-10]Status: DisposedITAT Amritsar09 Jun 2023AY 2009-10

Bench: Dr. M. L. Meena & Sh. Anikesh Banerjee

Section 144Section 250(6)

specific issues are originated from the appeal. First issue is the challenging the jurisdiction of assessment u/s 153A and the grievance related mechanical approval u/s 153D by revenue. The ld. AR had not specifically taken the grounds related to mechanical section 153D. But the assessee was agitated before the bench

M/S Narula Foods Privatelimited, Ferozepur vs. Deputy Commissioner of Income Tax Central Circle, Amritsar

In the result, the appeals of the revenue are dismissed and appeals of assessee are allowed in the terms indicated above

ITA 74/ASR/2020[2008-09]Status: DisposedITAT Amritsar09 Jun 2023AY 2008-09

Bench: Dr. M. L. Meena & Sh. Anikesh Banerjee

Section 144Section 250(6)

specific issues are originated from the appeal. First issue is the challenging the jurisdiction of assessment u/s 153A and the grievance related mechanical approval u/s 153D by revenue. The ld. AR had not specifically taken the grounds related to mechanical section 153D. But the assessee was agitated before the bench

M/S Narula Oil & Fats Private Limited, Ahemdabad vs. Deputy Commissioner of Income Tax Central Circle, Amritsar

In the result, the appeals of the revenue are dismissed and appeals of assessee are allowed in the terms indicated above

ITA 69/ASR/2020[2012-13]Status: DisposedITAT Amritsar09 Jun 2023AY 2012-13

Bench: Dr. M. L. Meena & Sh. Anikesh Banerjee

Section 144Section 250(6)

specific issues are originated from the appeal. First issue is the challenging the jurisdiction of assessment u/s 153A and the grievance related mechanical approval u/s 153D by revenue. The ld. AR had not specifically taken the grounds related to mechanical section 153D. But the assessee was agitated before the bench

M/S Narula Oil & Fats Private Limited, Ahemdadbad vs. Deputy Commissioner of Income Tax Central Circle, Amritsar

In the result, the appeals of the revenue are dismissed and appeals of assessee are allowed in the terms indicated above

ITA 68/ASR/2020[2011-12]Status: DisposedITAT Amritsar09 Jun 2023AY 2011-12

Bench: Dr. M. L. Meena & Sh. Anikesh Banerjee

Section 144Section 250(6)

specific issues are originated from the appeal. First issue is the challenging the jurisdiction of assessment u/s 153A and the grievance related mechanical approval u/s 153D by revenue. The ld. AR had not specifically taken the grounds related to mechanical section 153D. But the assessee was agitated before the bench

M/S Narula Oil & Fats Private Limited, Ahemdabad vs. Deputy Commissioner of Income Tax Central Circle, Amritsar

In the result, the appeals of the revenue are dismissed and appeals of assessee are allowed in the terms indicated above

ITA 67/ASR/2020[2014-15]Status: DisposedITAT Amritsar09 Jun 2023AY 2014-15

Bench: Dr. M. L. Meena & Sh. Anikesh Banerjee

Section 144Section 250(6)

specific issues are originated from the appeal. First issue is the challenging the jurisdiction of assessment u/s 153A and the grievance related mechanical approval u/s 153D by revenue. The ld. AR had not specifically taken the grounds related to mechanical section 153D. But the assessee was agitated before the bench

M/S Narula Oil & Fats Private Limited, Ahemdabad vs. Deputy Commissioner of Income Tax Central Circle, Amritsar

In the result, the appeals of the revenue are dismissed and appeals of assessee are allowed in the terms indicated above

ITA 66/ASR/2020[2013-14]Status: DisposedITAT Amritsar09 Jun 2023AY 2013-14

Bench: Dr. M. L. Meena & Sh. Anikesh Banerjee

Section 144Section 250(6)

specific issues are originated from the appeal. First issue is the challenging the jurisdiction of assessment u/s 153A and the grievance related mechanical approval u/s 153D by revenue. The ld. AR had not specifically taken the grounds related to mechanical section 153D. But the assessee was agitated before the bench

M/S Narula Oil & Fats Private Limited, Ahemdabad vs. Deputy Commissioner of Income Tax Central Circle, Amritsar

In the result, the appeals of the revenue are dismissed and appeals of assessee are allowed in the terms indicated above

ITA 65/ASR/2020[2010-11]Status: DisposedITAT Amritsar09 Jun 2023AY 2010-11

Bench: Dr. M. L. Meena & Sh. Anikesh Banerjee

Section 144Section 250(6)

specific issues are originated from the appeal. First issue is the challenging the jurisdiction of assessment u/s 153A and the grievance related mechanical approval u/s 153D by revenue. The ld. AR had not specifically taken the grounds related to mechanical section 153D. But the assessee was agitated before the bench

M/S Narula Oil & Fats Private Limited, Ahemdabad vs. Deputy Commissioner of Income Tax Central Circle, Amritsar

In the result, the appeals of the revenue are dismissed and appeals of assessee are allowed in the terms indicated above

ITA 64/ASR/2020[2009-10]Status: DisposedITAT Amritsar09 Jun 2023AY 2009-10

Bench: Dr. M. L. Meena & Sh. Anikesh Banerjee

Section 144Section 250(6)

specific issues are originated from the appeal. First issue is the challenging the jurisdiction of assessment u/s 153A and the grievance related mechanical approval u/s 153D by revenue. The ld. AR had not specifically taken the grounds related to mechanical section 153D. But the assessee was agitated before the bench

M/S Narula Oil & Fats Private Limited, Ahemdabad vs. Deputy Commissioner of Income Tax Central Circle, Amritsar

In the result, the appeals of the revenue are dismissed and appeals of assessee are allowed in the terms indicated above

ITA 63/ASR/2020[2008-09]Status: DisposedITAT Amritsar09 Jun 2023AY 2008-09

Bench: Dr. M. L. Meena & Sh. Anikesh Banerjee

Section 144Section 250(6)

specific issues are originated from the appeal. First issue is the challenging the jurisdiction of assessment u/s 153A and the grievance related mechanical approval u/s 153D by revenue. The ld. AR had not specifically taken the grounds related to mechanical section 153D. But the assessee was agitated before the bench

Assistant Commissioner of Income Tax Central Circle, Amritsar vs. M/S Narula Oil & Fats Privte Limited, Ahmedabad

In the result, the appeals of the revenue are dismissed and appeals of assessee are allowed in the terms indicated above

ITA 59/ASR/2020[2013-14]Status: DisposedITAT Amritsar09 Jun 2023AY 2013-14

Bench: Dr. M. L. Meena & Sh. Anikesh Banerjee

Section 144Section 250(6)

specific issues are originated from the appeal. First issue is the challenging the jurisdiction of assessment u/s 153A and the grievance related mechanical approval u/s 153D by revenue. The ld. AR had not specifically taken the grounds related to mechanical section 153D. But the assessee was agitated before the bench