Atul Kumar Bansal Vs ACIT (ITAT Delhi)
Tribunal Nixes Mechanical Approval -Consolidated 153D Approval Invalid: ITAT Delhi Quashes Search Assessments
Assessee challenged validity of assessments on the ground that approval u/s 153D, a statutory precondition, was obtained in a mechanical & consolidated manner for multiple years together. Revenue placed reliance on approval letter dated 31.03.2015 issued by Addl. CIT, Central Range-4, Delhi.
Tribunal noted that identical issue had recently been adjudicated in Keher Singh Vs. DCIT (ITAT Delhi, order dated 19.03.2025), where consolidated approval was held invalid. It was emphasized that Sec. 153D mandates approval for each assessment year, for each assessee separately, based on independent application of mind. Reliance was also placed on PCIT Vs. Anuj Bansal (Del HC, 466 ITR 254), PCIT Vs. Shiv Kumar Nayyar (Del HC, ITA No.285/2024), and ACIT Vs. Serajuddin & Co. (Orissa HC, upheld by SC on 28.11.2023), all holding that mechanical or rubber-stamp approvals vitiate assessment.
In the present case, Addl. CIT had issued one composite approval covering A.Ys. 2007-08 to 2013-14 for the Assessee, which Tribunal found contrary to the plain language of Sec. 153D. Such omnibus approval lacked due application of mind and hence was legally unsustainable.
Accordingly, Tribunal quashed the entire block of search assessments for A.Ys. 2008-09 to 2013-14. Since assessments were invalidated on this legal ground, other issues raised by both Assessee & Revenue were left open as academic.
