Vineet Prakash Bansal HUF Moh. Khatiyan Vs ITO (ITAT Delhi)
Mechanical Approval Vitiates Assessment: ITAT Quashes Sec. 153C Order for Invalid Sec. 153D Sanction; Search Assessment Annulled: Single, Template-Style Approval Violates Sec. 153D Mandate; Jurisdictional Flaw: ITAT Confirms Mechanical Sec. 153D Sanction Renders 153C Assessment Null and Void
Delhi Tribunal quashed the assessment framed u/s 153C, holding that the approval granted u/s 153D was mechanical, perfunctory & invalid, thereby vitiating the entire assessment.
The case arose from a search u/s 132 on 10.08.2018 at the premises of Vibhu Prakash Bansal, Vineet Prakash Bansal & M/s Ravi Prakash & Sons Sarrafa Bazar. Based on seized material, AO passed an assessment u/s 153C adding ₹7.84 lakh u/s 69 as unexplained investment. The Assessee challenged the validity of assessment, contending that approval u/s 153D—a precondition for framing 153C orders—was granted without any application of mind & in a single approval for multiple years.
Tribunal examined the approval letter dated 08.06.2021 issued by Addl. CIT, Central Range, Lucknow, & observed that it was a pro forma approval-containing no discussion, no reference to seized material, & granting one consolidated sanction for three assessment years (2014-15, 2015-16 & 2017-18). Tribunal held that such an omnibus, template-style approval violates the statutory requirement that each year’s draft assessment must be separately examined with independent application of mind.
