Dheeraj Chaudhary Vs ACIT (ITAT Delhi)
Split Bench, But Majority Wins: ITAT Delhi Quashes 153A Assessments– Omnibus 153D Approval Found Mechanical- Safeguard, Not Ritual – ITAT Strikes Down Search Assessments for Want of Proper 153D Approval
Background
- Assessee: Shri Dheeraj Chaudhary (individual).
- Search: On Karan Luthra group (14.03.2014); followed by search at assessee’s premises (29.04.2014).
- Centralization: Case transferred to Central Circle-8, New Delhi (19.08.2015).
- AO: Issued notice u/s 153A; treated original return u/s 139(1) as response.
- Assessments: Completed u/s 153A r.w.s. 143(3), making additions (e.g., ₹12.02 lakh in AY 2009-10).
- CIT(A): Confirmed additions.
- Appeals before ITAT: Raised additional legal ground—approval u/s 153D mechanical & invalid, hence assessments void.
Tribunal’s Findings
1. Admission of Additional Ground
Though raised late, ITAT admitted it since it was a pure legal ground (citing NTPC vs. CIT & Dalmia Power Ltd.).
2. Approval u/s 153D
- AO sought approval from Addl. CIT, Central Range-2, on 27.12.2016 enclosing draft orders for AYs 2009-10 to 2015-16.
- CIT granted same-day omnibus approval for all years.
- No year-wise reasoning, no reference to seized material or appraisal report.
- ITAT held this was mechanical & without application of mind.
- Relied on:
Orissa HC in ACIT v. Serajuddin & Co. (150 taxmann.com 146) – mechanical approval invalid; upheld by SC (163 taxmann.com 118).
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