Sudesh Kumar Vs DCIT (ITAT Delhi)
Mechanical 153D Approval Strikes Down Entire Search Assessment: Delhi ITAT Quashes ₹1.09 Cr 69A Addition
Delhi ITAT, Delhi Bench ‘B’, in Sudesh Kumar Vs DCIT (ITA No.2471/Del/2025, AY 2019-20, order dated 19-12-2025), quashed the assessment framed u/s 153A r.w.s. 143(3) solely on the ground of mechanical approval u/s 153D. The Tribunal admitted the additional legal ground holding that validity of approval goes to the root of jurisdiction. It noted that approval dated 08-06-2021 was granted through a common, omnibus communication covering multiple AYs and even another assessee, without demonstrating application of mind by the Addl. CIT. Relying heavily on its earlier decision in Shri Dheeraj Chaudhary (ITA No.6158/Del/2018), as affirmed by the Third Member, the Tribunal reiterated that approval u/s 153D is an in-built safeguard and cannot be reduced to an empty formality. Applying the doctrine “sublato fundamento cadit opus”, it held that once the foundation (153D approval) fails, the superstructure (assessment order) automatically collapses. Consequently, the entire assessment, including addition of ₹1,09,50,000 u/s 69A r.w.s. 115BBE and related grounds, was annulled, leaving merits open as academic.
FULL TEXT OF THE ORDER OF ITAT DELHI
The captioned appeal has been preferred by the assessee against order dated 19.02.2025 of the Commissioner of Income Tax (Appeals)-3, Delhi [hereinafter referred to as ‘ld. CIT(A)’] arising out of assessment order dated 21.06.2021 passed u/s 153A/143(3) of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) pertaining to Assessment Year 2019-20.
