Periwal Polymers Pvt. Ltd. Vs DCIT (ITAT Delhi)
The Income Tax Appellate Tribunal (ITAT), Delhi Bench, considered appeals filed by the assessee challenging orders of the Commissioner of Income Tax (Appeals) dated 25.02.2025 for Assessment Years (AYs) 2018–19 to 2021–22. The assessee raised several technical and substantive grounds against the assessments. A principal issue raised across the appeals was the validity of approval granted under Section 153D of the Income Tax Act. The assessee contended that the approval granted by the Additional Commissioner of Income Tax (Addl. CIT) was mechanical, improper, illegal, and without application of mind. It was argued that a consolidated approval had been granted for multiple assessment years, which rendered the entire assessment proceedings invalid.
The assessee’s counsel submitted that a common approval under Section 153D had been granted by the Addl. CIT for several assessment years. According to the assessee, such consolidated approval indicated that the authority had not independently examined each assessment year. The counsel argued that since the approval itself was invalid, the consequential assessments framed under Section 153C were also void ab initio. The assessee relied on several judicial decisions, including those of the Delhi High Court in cases such as PCIT vs. Shiv Kumar Nayyar, PCIT vs. Anuj Bansal, PCIT vs. Subhash Dabas, and PCIT vs. Tirupati Buildings & Offices Pvt. Ltd., where it was held that consolidated satisfaction notes or approvals without proper application of mind were invalid and could vitiate the assessments.
