ITAT Surat Quashes Assessments Over Unproved Mandatory Section 153D Approval

Piyush Ranchhodbhai Patel Vs ACIT (ITAT Surat)

Summary: The Surat Bench of the Income Tax Appellate Tribunal adjudicated six cross-appeals, comprising three appeals by the assessee and three by the Revenue, arising from assessments for AYs 2011-12, 2012-13 and 2013-14. The assessee, engaged in real-estate business, had been subjected to a search under section 132 on 27.12.2012. Assessments for AYs 2011-12 and 2012-13 were framed under sections 153A r.w.s. 143(3), while the AY 2013-14 assessment was framed under section 143(3). The assessee raised additional legal grounds challenging, inter alia, compliance with section 153C and the validity of approval under section 153D. The Tribunal admitted the additional grounds as they were legal in nature, went to the root of the matter and required no fresh evidence. The principal issue considered was whether the assessments could survive when the approval letters allegedly granted under section 153D had not been produced and the Assessing Officer had stated that they were not traceable. Section 153D makes prior approval a condition precedent for an assessment order by an Assessing Officer below the prescribed rank. The Tribunal considered the decisions in Pr. Commissioner of Income-tax, Surat-1 Vs. M/s Munisuvrat Corporation, Pr. CIT Vs. Sunrise Finlease (P.) Ltd., ACIT Vs. M/s Serajuddin & Co. and Principal Commissioner of Income-tax (Central)-2 Vs. Anuj Bansal, among others.