Veena Singh Vs ACIT (ITAT Delhi)
In a recent case before the Income Tax Appellate Tribunal (ITAT) Delhi, the matter of Veena Singh versus the Assistant Commissioner of Income Tax (ACIT) unfolded, shedding light on the critical importance of proper application of mind in granting approvals under Section 153D of the Income Tax Act, 1961.
Veena Singh, the appellant, challenged the orders of the Learned Commissioner of Income Tax (Appeals) (CIT(A)), dated 16/11/2021 and 01/12/2021 for the Assessment Years 2016-17 and 2017-18 respectively.
The grounds of appeal put forth by Veena Singh were varied, including objections against the assessment under Section 153A, additions made under various sections, and the alleged flawed approval under Section 153D.
The crux of Veena Singh’s argument revolved around the contention that the assessment orders were void ab initio due to the purportedly invalid approval under Section 153D by the Additional Commissioner of Income Tax, Central Range 7 Delhi, without proper application of mind.
The tribunal observed that the approval granted lacked specificity and appeared to be a routine mechanical exercise devoid of any substantive reasoning or application of mind. The absence of individual year-wise reasoning in the approval raised significant concerns.
Furthermore, the tribunal noted discrepancies in the approval process, including the absence of any reference to draft assessment orders and the seemingly hurried manner in which the approval was granted on the same date as the submission of the letter requesting approval.
