Gaurav Kathuria Vs ACIT (ITAT Delhi)
The ITAT Delhi allowed the assessee’s appeal and quashed the assessment framed u/s 153A after holding that approval granted u/s 153D by the Addl. CIT was mechanical and without application of mind. During search proceedings, the AO made addition of ₹9.73 lakh and the CIT(A) upheld the assessment. Before the Tribunal, the assessee raised additional legal grounds challenging validity of approval u/s 153D, transfer order u/s 127 and DIN-related issues.
The Tribunal admitted the additional legal ground and observed that the approving authority had granted a single omnibus approval for multiple assessment years on the same day without independent examination of seized material or draft orders for each year. Relying on the Delhi High Court decision in Shiv Kumar Nayyar and other precedents, it held that approval u/s 153D must be granted separately for each assessment year with due application of mind and cannot be a ritualistic or rubber-stamp exercise. Since the approval was mechanical, the entire assessment stood vitiated and was quashed, rendering other grounds academic.
FULL TEXT OF THE ORDER OF ITAT DELHI
The present appeal is filed by assessee against the order dated 18.09.2024 by Ld. Commissioner of Income Tax (A)-3, Gurgaon [“Ld. CIT(A)”] in Appeal No.10543/2017-18 passed u/s 250 of the Income Tax Act, 1961 [“the Act”] arising out of assessment order dated 08.06.2021 passed u/s 153A of the Act pertaining to Assessment Year 2018-19.
