Minto Developers Pvt. Ltd. Vs ACIT (ITAT Allahabad)
In a consolidated order, the Income Tax Appellate Tribunal, Allahabad Bench, decided multiple appeals and cross-objections arising from search and assessment proceedings in a group of connected cases, with one appeal taken as the lead matter. The dispute stemmed from a search conducted under section 132, followed by assessments framed under section 153A after earlier proceedings before the Income Tax Settlement Commission abated under section 245HA. The assessees challenged the validity of the assessments primarily on two legal grounds: limitation for completion of assessment and the validity of mandatory prior approval granted under section 153D of the Income Tax Act.
The Tribunal noted that earlier, in the first round of litigation, these issues had been remitted to the Commissioner (Appeals) for fresh adjudication. In the consequential orders, the Commissioner (Appeals) upheld the assessments, holding that they were within limitation and that valid approval under section 153D had been granted. Aggrieved, the assessees approached the Tribunal again.
Before the Tribunal, extensive arguments were advanced on whether the approval under section 153D was granted after due application of mind. The assessees highlighted that a single, common approval letter covered a large number of assessees and assessment years, was issued on the very last day of limitation, and did not record any independent satisfaction or discussion. It was argued that such approval was mechanical, perfunctory, and contrary to statutory requirements and departmental instructions. The Revenue defended the approval, contending that separate approvals were not mandatory and that the statute did not require detailed reasons to be recorded.
