Mechanical Approval Voids Income Tax Search Assessments: Allahabad HC

PCIT Vs Subodh Agarwal (Allahabad High Court)

Allahabad High Court has dismissed an appeal by the Income Tax Department, upholding the Income Tax Appellate Tribunal (ITAT), Lucknow Bench’s decision to quash assessment orders for Subodh Agarwal for Assessment Year 2015-16. The High Court concurred with the Tribunal that the mandatory prior approval required under Section 153D of the Income Tax Act, 1961, for search assessments was granted in a mechanical manner, rendering the entire assessment proceeding void.

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