Approval of S. 153D Assessment on Next day by Addl. CIT: ITAT quashes Demand Order

ITAT quashed a demand order issued under Section 153D of the Income Tax Act, citing a lack of proper approval from the Additional CIT. In this case, the assessment was approved the next day after receiving the draft assessment, which raised concerns about the lack of due diligence. ITAT ruled that the approval must be meaningful and should reflect proper consideration, not a mere formality. By quashing the demand order, the Tribunal emphasized the necessity of proper procedural compliance in assessments to ensure fairness. This ruling is a reminder to tax authorities about their responsibility in following statutory procedures meticulously.