PCIT-7 Vs Shivgori Builders Pvt. Ltd. (Delhi High Court)
The Delhi High Court addressed a group of appeals filed by the Revenue under Section 260A of the Income Tax Act. The Court first condoned the delay of 812 days in re-filing the appeals and disposed of the applications. The main appeals challenged a common Income Tax Appellate Tribunal (ITAT) order dated 8 February 2023 relating to Assessment Years 2006-07, 2007-08, and 2008-09. The Revenue argued that the questions raised in these appeals were the same as those already decided by the Court in earlier matters, including decisions in MDLR Hotels Pvt. Ltd. and King Buildcon Pvt. Ltd., both of which involved the validity of approvals granted under Section 153D for search-related assessments. According to the Revenue, the substantial questions proposed in the present batch were identical to those previously examined, and the ITAT orders under challenge were also common across these matters.
The Court reproduced the key conclusions from the earlier decision in ITA No. 593/2023 concerning the legality of consolidated approvals under Section 153D. In that case, the Tribunal had found that a single approval letter was issued for 246 assessments with identical language, without reference to seized material or case-specific analysis. The approval merely stated that the draft orders were approved and directed that final orders be passed before the limitation period. The Tribunal had observed that Section 153D requires prior approval of the Joint Commissioner and that its legislative intent, supported by CBDT Circular No. 3/2008, mandated meaningful application of mind by the approving authority. The Tribunal emphasized that the provision was introduced to ensure that assessments in search cases undergo a higher level of scrutiny and that the superior authority must examine seized material and assessment records before granting approval.
