March 2023
Search and seizure — Assessment in search cases — Condition precedent — Prior approval of prescribed authority in respect of each assessment year — Sanction of prescribed authority for various assessees granted on single day — AO passing draft assessment order and final assessment order on same day of approval — Approval illegal and non est
By K. B. Bhujle, Advocate
87 Principal CIT vs. Subodh Agarwal
[2023] 450 ITR 526 (All)
A. Y.: 2015-16
Date of order: 12th December, 2022
Sections 132, 153A, 153D and 260A of ITA 1961
Search and seizure — Assessment in search cases — Condition precedent — Prior approval of prescribed authority in respect of each assessment year — Sanction of prescribed authority for various assessees granted on single day — AO passing draft assessment order and final assessment order on same day of approval — Approval illegal and non est
Pursuant to a search and seizure operation under section 132 of the Income-tax Act, 1961 conducted on 31st August, 2015, the assessment for the A.Y. 2015-16 was completed under section 153A/143(3) of the Act by the Deputy Commissioner of Income-tax, Central Circle-1, Kanpur, vide order dated 31st December, 2017and various additions were made.
The Tribunal set aside the order of the AO. The Tribunal found as under: The AO prepared the draft assessment order on 31st December, 2017 for the A.Y. 2015-16. The approval of the draft assessment order under section153D was given on 31st December, 2017 itself and the final assessment order was passed on the same day, i.e., on 31st December, 2017 by the AO. The Additional Commissioner of Income-tax granted approval of draft assessment orders under section 153D in 38 cases which also includ
