Sanjay Garg Vs DCIT (ITAT Delhi)
Assessee challenged assessments framed u/s 153A r.w.s. 143(3) on the ground that mandatory approval u/s 153D was granted mechanically without proper application of mind. AO had made an addition of Rs.50,00,000/- as unexplained money u/s 69, which was confirmed by CIT(A)-24, New Delhi vide order dated 28.02.2025.
Before Tribunal, it was contended that JCIT had granted common approval for multiple years in a routine manner on the same day, which was humanly impossible & contrary to law. Reliance was placed on Delhi High Court in PCIT Vs Shiv Kumar Nayyar (ITA No.285/2024) & Allahabad High Court in PCIT Vs Sapna Gupta (2022) which held that 153D approval cannot be mechanical & must reflect application of mind for each assessee & each assessment year. Tribunal also considered ITAT rulings in Millenium Vinimay Pvt. Ltd. & Shreelekha Damani (affirmed by Bombay HC), where mechanical approvals were held invalid.
Revenue argued that 153D approval was an administrative requirement & manner of approval was not relevant to Assessee.
Tribunal observed that approval in this case was indeed mechanical, being a blanket sanction without any independent satisfaction. It reiterated that approval u/s 153D is an in-built safeguard to prevent arbitrary assessments & must be exercised judiciously. Mechanical approval vitiates the entire proceedings.
