Pawan Kumar Agrawal Vs ACIT (ITAT Raipur)
Tribunal Strikes Down Assessment for Want of Proper Sanction- Approval Must Show Independent Mind & Mechanical Approval u/s 153D Void
In this appeal before Raipur Bench Assessee challenged the validity of assessment framed pursuant to approval granted u/s 153D. The legal contention was that such approval was mechanical, routine & without independent application of mind, thereby vitiating the entire proceedings.
Assessee placed reliance on the fact that approval u/s 153D dated 16.03.2021 was granted on the very same day the AO’s request letter was made, covering multiple years for both Pawan Kumar Agrawal & Mamta Agrawal. Tribunal noted that in a connected matter, Mamta Agrawal Vs ACIT (2025) 176 taxmann.com 28 (Raipur-Trib.), the same approval had already been examined & held to be mechanical, summary & invalid.
Tribunal further relied on Delhi High Court in PCIT Vs Shiv Kumar Nayyar (467 ITR 186), PCIT Vs Sapna Gupta (All HC), Orissa HC in ACIT Vs Serajuddin & Co., where it was held that approval u/s 153D must be granted separately for each year & each assessee after due application of mind. The Supreme Court had also dismissed Revenue’s SLP against Serajuddin, affirming this principle. Additionally, Delhi High Court in Pr.CIT Vs MDLR Hotels (P) Ltd. held that mechanical approvals covering hundreds of assessments in bulk are contrary to legislative intent & hence void.
