Smt. Komal Tyagi Vs ACIT (ITAT Delhi)
ITAT Delhi: Section 153A Assessment Quashed for Mechanical and Consolidated Approval u/s 153D – Mandatory Year-wise Application of Mind Required
The Delhi Bench of the ITAT allowed the assessee’s appeal and quashed the assessment order passed under section 153A for AY 2017-18 on the ground that the mandatory approval under section 153D was granted in a mechanical and consolidated manner, without proper application of mind. The Tribunal found that the approving authority had issued a single, omnibus approval for multiple assessment years through a general and stereotyped observation, despite the fact that different and distinct issues were involved in each year.
The Bench noted that the approval letter merely reproduced statutory language and failed to demonstrate any independent examination of draft assessment orders for each assessment year. It was also observed that there was no material to show that draft orders were earlier examined, objections suggested, or revised drafts scrutinised before granting approval. Such an approach defeated the very object of section 153D, which requires conscious and independent satisfaction of the approving authority.
Relying on binding judicial precedents, particularly the Delhi High Court decision in PCIT v. Shiv Kumar Nayyar, along with Sapna Gupta (Allahabad HC) and Serajuddin & Co. (Orissa HC), the Tribunal reiterated that approval under section 153D must be granted separately for “each assessment year” and cannot be a ritualistic or rubber-stamp exercise. Since the approval in the present case was found to be legally infirm, the assessment was held to be void ab initio and was accordingly quashed. The appeal of the assessee was allowed in full.
FULL TEXT OF THE ORDER OF ITAT DELHI
This appeal is preferred by the assessee against the order dated 18.03.2025 of the Ld. Commissioner of Income Tax (Appeals)-23(hereinafter referred as Ld. First Appellate Authority or in short Ld. ‘FAA’) in DIN & Order No: ITBA/APL/S/250/2024-25/1074633631(1) arising out of the order dated 28.09.2021u/s 153(A)of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) passed by the Deputy Commissioner of Income-Tax, Central Circle-03, New Delhi for AY: 2017-18.
