Case Law Details
PCIT Vs Anuj Bansal (Delhi High Court)
Introduction: The Delhi High Court recently addressed the case of PCIT vs. Anuj Bansal, concerning the assessment for the fiscal year 2017-18. The appeal was made by the Principal Commissioner of Income Tax (PCIT) to challenge the order passed by the Income Tax Appellate Tribunal (Tribunal). The case revolved around the approval process under Section 153D of the Income Tax Act.
Detailed Analysis: In this case, the appellant (revenue) sought to appeal the order dated October 31, 2022, issued by the Tribunal. However, it is essential to note that the respondent (assessee) had previously filed a cross-objection for the same assessment year (AY) 2017-18, which was disposed of by the Tribunal via an order dated April 29, 2022.
The appeal filed by the revenue against the order dated April 29, 2022, was numbered as ITA No. 368/2023 and was also related to AY 2017-18. This appeal was decided by the Delhi High Court in a separate judgment dated July 2023, titled “Pr. Commissioner of Income Tax (Central)-2 vs. Anuj Bansal.” In that judgment, the court emphasized that the approval for the assessment was granted without a proper examination of the assessment record or the search material. The court found that there was a lack of application of mind by the Additional Commissioner of Income Tax (ACIT) when granting approval.
The ACIT had approved the draft assessment order, where the returned income was Rs. 87,20,580, while the total assessed income by the Assessing Officer (AO) was Rs. 16,69,42,560. The court pointed out the significant discrepancy between these figures and noted that the approval was granted in a mechanical manner without a valid application of mind. As a result, the assessment order was vitiated for the lack of valid approval under Section 153D of the Income Tax Act.
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