SEH Realtors Pvt. Ltd Vs ACIT (ITAT Delhi)
The Income Tax Appellate Tribunal (ITAT) Delhi has delivered a significant ruling in the case of SEH Realtors Pvt. Ltd. vs. ACIT, for Assessment Year (AY) 2013-14. The Tribunal set aside the assessment order, declaring it void ab initio, on the grounds that the mandatory approval under Section 153D of the Income-tax Act, 1961, was granted by the Joint Commissioner of Income Tax (JCIT) in a mechanical manner, without proper application of mind.
The case originated from a search and seizure operation conducted under Section 132 of the Act on January 16, 2013, involving the Shahi Exports group, Span Group, U K Paints, and Orris Group, which also included a separate search warrant issued for SEH Realtors Pvt. Ltd. Following the centralization of the case on July 15, 2013, a notice under Section 153A was issued, leading to the assessee filing a return of income on December 24, 2013, declaring an income of Rs. 2,13,08,950/-. The assessment was completed under Section 143(3) on March 27, 2015, after obtaining prior approval from the JCIT.
The core of the assessee’s challenge, raised as a preliminary ground in its cross-objections, was that the JCIT’s approval under Section 153D was perfunctory and lacked genuine application of mind, thereby rendering the entire assessment invalid.
