Antriksh Engineers Construction Corporation Vs ACIT (ITAT Delhi)
The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) decided a batch of appeals filed by various assessees belonging to the Antriksh Group against orders passed by the Commissioner of Income Tax (Appeals), Gurgaon, arising from assessments framed under Sections 153A, 153C, 143(3) and related provisions of the Income Tax Act for Assessment Years 2008-09 to 2015-16.
The cases originated from a search conducted on 5 February 2014 at the residential and business premises of the Antriksh Group, Dwarkadhis Buildwell Group and certain partners. The Assessing Officer (AO) completed assessments by making several additions, which were largely confirmed by the CIT(A). The assessees challenged the assessments before the Tribunal on multiple legal and factual grounds.
A principal issue before the Tribunal was the validity of approvals granted under Section 153D. The assessees argued that the approvals accorded by the Joint Commissioner of Income Tax were mechanical, consolidated in nature, and granted without application of mind. The approvals covered numerous cases and assessment years without indicating separate consideration of each year, movement of files, examination of appraisal reports, or reasons supporting the approval.
The Tribunal examined various judicial precedents relied upon by the assessees, including decisions of the Orissa High Court, Allahabad High Court, Bombay High Court, Delhi High Court and the Delhi Tribunal. It noted that courts had consistently held that approval under Section 153D is a mandatory safeguard and cannot be treated as an empty formality. The approving authority must independently apply its mind to the material and draft assessment orders.
