Sanjay Kumar, Prop. Shree Balaji Oil Mill Vs DCIT, Central Circle-I, Gurgaon and Sunil Gupta, Prop. M/s OP Cotton and Oil Mills Vs DCIT, Central Circle-I, Gurgaon

Parties Involved

Facts Summary

The present appeals were filed by two different parties, Sanjay Kumar and Sunil Gupta, both from Charkhi Dadri in District Bhiwani, Haryana. The appeals were heard separately but were disposed of together due to their relevancy. The appellants challenged the validity of the approval granted under section 153D of the Income-tax Act, 1961, by the Joint Commissioner of Income-tax, Range-2, Gurgaon. The approval was questioned for not indicating if the approving authority had examined the draft order and the assessment record. The appellants argued that the approval was granted without independent application of mind and merely endorsed the submissions of the Assessing Officer. The Revenue defended the approval by stating that the draft assessment order and relevant assessment records were sent to the approving authority, and the approval was granted after considering all issues appearing from the material on record.…

Legal Issues

• 1. Whether the approval granted under section 153D of the Income-tax Act, 1961, was valid?

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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