Vinod Jindal Vs DCIT (ITAT Delhi)
Revenue’s Rubber Stamp Costs Dear – ITAT Deletes Additions & Penalty – Separate 153D Approval Needed for Each AY – ITAT Restores Rule of Law
Background
A search and seizure operation under Section 132 of the Income Tax Act, 1961 was conducted on 6 June 2018 on the SRS Group and its associates, including Mr. Vinod Jindal. Pursuant to the search, notices under Section 153A were issued for Assessment Years (AYs) 2013–14 to 2018–19. Mr. Jindal filed returns, but the Assessing Officer (AO) made additions under Section 68 (unexplained credits) and also treated declared salary income as unexplained income.
The assessments were framed with prior approval from the Additional Commissioner of Income Tax (Addl. CIT) under Section 153D, which is mandatory in search-related assessments. The assessee challenged the validity of these approvals, arguing that they were mechanical and omnibus, not year-specific. The Commissioner of Income Tax (Appeals) [CIT(A)] upheld the assessments, leading to multiple appeals before the Income Tax Appellate Tribunal (ITAT), Delhi.
Key Issue: Approval Under Section 153D
Section 153D mandates that before passing any order of assessment under Section 153A, the AO must obtain prior approval of the Joint/Additional CIT. This approval is not a mere formality but requires an independent application of mind for each assessment year.
