Common Section 153D approval makes all search assessments void ab initio

By CA Vijayakumar Shetty Income Tax Judiciary December 12, 2025

TaxGuru Citation: 2025 taxguru.in 12646
Case Name: Mukesh Kumar Vs ACIT (ITAT Delhi)
Appeal Number: Only available for paid members
Date of Judgement/Order: Only available for paid members
Related Assessment Year: 2011-12
Courts: All ITAT, ITAT Delhi

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Mukesh Kumar Vs ACIT (ITAT Delhi)

Delhi ITAT quashed all assessments framed u/s 153A & 153C arising out of a common search dated 23-07-2015. The Tribunal found that the Addl. CIT had granted a single, mechanical & combined approval u/s 153D covering dozens of assessees & multiple assessment years, which was impermissible in law. Relying on recent binding precedents of the Delhi High Court & Supreme Court in PCIT vs Shiv Kumar Nayyar, PCIT vs Anuj Bansal & PCIT vs MDLR Hotels (P.) Ltd., the Tribunal held that such omnibus approval vitiates the very jurisdiction to frame assessment & renders the entire proceedings a nullity. Once the foundational illegality was established, all additions on merits relating to alleged accommodation entries were held to be academic. Consequently, all appeals of the assessee were allowed & the Revenue’s appeals were dismissed.

FULL TEXT OF THE ORDER OF ITAT DELHI

The instant batch of ten cases involves the twin assessees herein, namely, Sh. Mukesh Kumar and M/s. Mahashiv Metal and Alloys Pvt. Ltd. All other relevant details thereof stand tabulated as under:

Sl. No.

Appeal No.

Appellant

Respondent

Order Appealed against

ITA No. 1683/Del/2024 for AY: 2011-12

Sh. Mukesh Kumar

ACIT, Central