Mechanical Section 153D Approval: ITAT Delhi Quashes Assessment

MDLR Airline (P) Ltd. Vs DCIT (ITAT Delhi) Income Tax Appellate Tribunal (ITAT) Delhi, in the case of MDLR Airline (P) Ltd. Vs DCIT, addressed the validity of assessment orders approved under Section 153D of the Income Tax Act. Section 153D mandates prior approval of the competent authority for assessments in search-related cases. The tribunal emphasized that such approval requires due application of mind and cannot be granted mechanically. Referring to the judgment in ACIT v. Serajuddin & Co. by the Orissa High Court, ITAT underlined that the approving authority must carefully evaluate th...