Amit Gupta and Sons HUF Vs DCIT (ITAT Delhi)
The Income Tax Appellate Tribunal (ITAT) Delhi has quashed the search assessment order for the Assessment Year 2013-14 in the case of Amit Gupta and Sons HUF Vs DCIT. The assessment was conducted under Section 153C of the Income Tax Act following a search and seizure operation on the Devipriya Group, Meerut. The assessee challenged the assessment, arguing that the jurisdiction under Section 153C was wrongly assumed and the assessment order was invalid due to improper approval under Section 153D. ITAT noted that the approval by the Joint Commissioner of Income Tax (JCIT), Meerut, was given in a consolidated manner for multiple years without reviewing case-specific documents, rendering the approval mechanical and legally unsustainable.
Relying on multiple judicial precedents, including decisions from the Delhi, Allahabad, and Orissa High Courts, ITAT ruled that each assessment year must be approved separately, with proper scrutiny of seized materials. As the approval lacked due diligence and failed to meet the legal requirement of independent application of mind, the assessment was deemed void ab initio. Consequently, the tribunal allowed the assessee’s appeal, making further examination of other legal and factual issues unnecessary. This ruling reinforces the principle that procedural lapses in tax assessments can lead to their invalidation if due process is not followed.
