Jatin Arora Vs ACIT (ITAT Delhi)
Common Section 153D Approval Invalidates Search Assessments — ITAT Delhi Quashes 153C Orders
The Delhi Bench of the ITAT allowed a batch of three appeals for AYs 2017-18, 2018-19 and 2019-20, holding that the search assessments framed under section 153C were void ab initio due to invalid approval under section 153D.
The Tribunal noted that the Assessing Officer sought and obtained one common approval from the Additional Commissioner for multiple assessment years through a single letter, without any indication of independent application of mind for each year. The approval merely granted sanction in a mechanical manner, lacking even minimal reasoning or year-wise consideration—amounting to rubber-stamping.
Relying on binding precedents, including PCIT v. Shiv Kumar Nayyar (Delhi HC), PCIT v. MDLR Hotels (P) Ltd. (Delhi HC), and ACIT v. Serajuddin & Co. (SC), the ITAT held that combined approvals under section 153D vitiate the entire assessment proceedings. Consequently, all impugned assessments for the three years were quashed, and the Tribunal declined to examine the merits, rendering them academic.
Accordingly, the assessee’s appeals were allowed in full.
FULL TEXT OF THE ORDER OF ITAT DELHI
The instant batch of 03 appeals pertains to the single assessee herein namely, Jatin Arora, against the separate orders of the Ld. CIT(A)-24, New Delhi pertaining to assessment years 2017-18, 2018-19 & 2019-20.
