Assessment/Reassessment in a Search-Related Case Cannot Be Passed Without Proper Approval by Competent Authority: ITAT [Read Order]

The Income Tax Appellate Tribunal (ITAT) of the New Delhi bench ruled that assessment or reassessment in a search-related case requires proper approval from the competent authority. The approval granted under section 153D of the Income Tax Act lacked scrutiny of assessment records or seized materials. \r

The case involved an assessee in chartered services and ground handling. Despite a special audit and revision applications, assessments were completed without due process. The First Appellate Authority upheld the approval, but the ITAT found it lacking examination by the Additional Commissioner. Section 153D mandates approval from a higher-ranking officer. \r

The ITAT noted the mechanical nature of the approval, devoid of proper scrutiny. Consequently, the tribunal quashed the assessment orders.