Search Assessments Quashed for Lack of Prior U/s 153D Approval

ACIT Vs Inderjit Mehta Constructions Pvt. Ltd. (ITAT Delhi)

Section 153A Assessments Void Without Prior 153D Approval; Post-Facto Sanction Cannot Cure Defect

In search assessments for AYs 2018-19 to 2021-22, the Assessing Officer passed orders under section 143(3) read with section 153A on 21.03.2022, whereas the mandatory approval under section 153D was granted only later on 23.03.2022. Thus, on the date the assessment orders were actually passed, no prior approval of the Joint/Additional Commissioner existed.

The CIT(A) held that prior approval under section 153D is a statutory pre-condition for a valid search assessment and that a post-facto sanction cannot validate an order already passed. Since the assessments were admittedly made before obtaining such approval, the entire proceedings were quashed as being without jurisdiction.

Before the Tribunal, the Revenue could not dispute these dates. Upholding the CIT(A)’s view, the Tribunal ruled that absence of prior 153D approval is a fatal legal defect, not a curable procedural lapse. Consequently, all four assessments were held bad in law and the Revenue’s appeals were dismissed for all years.

With the assessments themselves quashed, the assessee’s cross-objections were rendered infructuous and were also dismissed.

FULL TEXT OF THE ORDER OF ITAT DELHI

The captioned appeals preferred by the Revenue and the respective cross-objections preferred by the assessee are directed against separate orders passed by the Ld. CIT(Appeals)-30, New Delhi under Section 153A r.w.s. 143 of the Income Tax Act, 1961 (herein after referred to as the “Act”). Relevant details are tabulated as under:

2. Facts of the case involved in all these matters are identical and therefore, these were taken up for hearing analogously and are being disposed of by a single composite order for the sake of convenience.