Krishan Kumar Makrania Pro Vs DCIT (ITAT Delhi)
One Blanket Approval for 30 assessment Years & 6 Assessees Is Illegal – Jurisdictional Defect in 153D Approval Sinks Entire Case
A search u/s 132 was conducted in the Makrania Group on 23.08.2017. Pursuant to search, assessments were framed u/s 153A & 153C r.w.s 143(3) making multiple additions in the hands of various family members for several years. These assessments were upheld by CIT(A). Aggrieved, the Assessees filed appeals before Tribunal & also raised additional legal grounds challenging the validity of approval granted u/s 153D.
The core contention was that the approval granted by the JCIT u/s 153D was mechanical, generic & without application of mind. It was demonstrated that a single consolidated approval letter dated 30.12.2019 was issued for 30 assessment years across 6 different Assessees, instead of granting separate, independent, year-wise approvals as required by law. The approval did not refer to any seized documents, did not discuss issues involved, did not record any satisfaction, & was merely a stereotyped format granting blanket approval. It was impossible for the JCIT to have examined 30 assessment years in a single day meaningfully. Hence, the statutory safeguard of prior approval u/s 153D was reduced to an empty formality.
