DCIT Vs Sawhney Builders (ITAT Dehradun)
The Dehradun Bench of the Income Tax Appellate Tribunal (ITAT) dismissed the Revenue’s appeal for Assessment Year 2012-13 after holding that the assessment order passed under Section 143(3) was invalid due to the absence of a valid approval under Section 153D of the Income-tax Act. The Tribunal examined the approval dated 30.01.2014 granted by the prescribed authority, which covered five different assessees and assessment years from 2006-07 to 2012-13.
It noted that judicial precedents, including decisions of the Delhi High Court and the Supreme Court, had already settled the issue that approvals granted through a mere mechanical exercise involving multiple assessees do not satisfy the requirements of Section 153D and are non-est in law. Relying on these precedents, the Tribunal accepted the assessee’s legal challenge and quashed the assessment framed by the Assessing Officer on 30.01.2014. Since the assessment itself was held to be invalid, all other issues raised on merits became academic and required no adjudication. Consequently, the Revenue’s appeal was dismissed.
FULL TEXT OF THE ORDER OF ITAT DEHRADUN
This Revenue’s appeal for assessment year 2012-13, arises against the Commissioner of Income Tax (Appeals) [in short, the “CIT(A)”], Dehradun’s order dated 18.02.2015 passed in case no. 570A/CIT(A)/DDN/13-14, involving proceedings under section 143(3) of the Income-tax Act, 1961 (hereinafter referred to as ‘the Act’).
