Soni Commercial Enterprises Private Limited Vs ACIT (ITAT Delhi)
Summary: The Delhi Bench of the Income Tax Appellate Tribunal allowed the appeals filed by Soni Commercial Enterprises Private Limited against the orders passed by the Commissioner of Income Tax (Appeals)-26, Delhi, arising from assessments framed by the Assessing Officer under Section 153C read with Section 143(3) of the Income-tax Act, 1961.
The appeals related to Assessment Years 2014-15, 2015-16 and 2016-17, against assessment orders passed by ACIT, Central Circle-14, New Delhi dated 31.12.2019.
The assessee raised an additional ground challenging the validity of the assessments on the basis that the approval granted under Section 153D of the Act by the Additional Commissioner of Income Tax, Central Range-4, New Delhi vide letter dated 29.12.2019 was mechanical, ritualistic and granted without independent application of mind to the seized material, satisfaction note, assessment records, replies filed by the assessee and draft assessment orders.
The assessee contended that valid approval under Section 153D was a mandatory jurisdictional requirement and not an empty formality. It was submitted that absence of proper, independent and year-wise approval rendered the assessments passed under Section 153C read with Section 143(3) liable to be quashed.
The Revenue opposed the challenge, submitting that the approval indicated application of mind and was administrative in nature. The Department also relied upon Section 292BC of the Act introduced by the Finance Act, 2026, contending that the approval was a supervisory and administrative function and that deficiencies in reasons would not invalidate the approval. It was further submitted that the provision was applicable retrospectively.
