Nanak Chand Tayal Vs DCIT (ITAT Delhi)
The main issue raised was validity of approval u/s 153D, which is mandatory before passing assessment orders in search cases. Assessee contended that the Addl. CIT had granted a common approval covering 14 different assessees for multiple years, without independent application of mind. It was argued that such omnibus approval was mechanical & contrary to law laid down by Delhi High Court in Shiv Kumar Nayyar (ITA No.285/2024) & other rulings.
Tribunal noted that identical approval was earlier examined in case of Vinod Jindal Vs DCIT (ITA Nos.1979–1985/Del/2025) where it was held invalid as mechanical. The Bench reiterated that approval u/s 153D must be year-specific & assessee-specific, with indication that approving authority applied its mind to seized material & draft orders. Granting a blanket approval for several cases on the same day was humanly impossible & violated statutory mandate.
Relying on Delhi High Court’s binding judgment in Shiv Kumar Nayyar & Orissa High Court in Serajuddin & Co., Tribunal held that the approval in Assessee’s case was mechanical & invalid. Consequently, assessments based on such defective approval were quashed. Thus, all appeals of Assessee were allowed & impugned assessments annulled
FULL TEXT OF THE ORDER OF ITAT DELHI
