Terveeni Singh Vs Central Circle-14 (ITAT Delhi)
Mechanical Section 153D Approval Invalid: ITAT Quashes Search Assessments for Multiple Years
The Delhi Bench of the ITAT quashed the assessments framed under sections 153C read with 153A for AYs 2012-13 to 2014-15 and 2017-18 to 2018-19, holding that the mandatory approval granted under section 153D was mechanical, omnibus and without application of mind, rendering the entire proceedings void ab initio.
The Tribunal admitted the additional legal ground challenging the validity of approval under section 153D, treating it as a pure question of law in line with the Supreme Court ruling in Sinhgad Technical Education Society. On examination, it was found that the Additional Commissioner had granted a single, common approval dated 30.12.2019 for as many as 28 assessees covering multiple assessment years, without recording any year-wise or case-specific satisfaction.
Relying heavily on a series of binding precedents—including Anu Nagpal (ITAT Delhi), Millenium Vinimay (ITAT Delhi), PCIT v. Shiv Kumar Nayyar (Delhi HC) and Supreme Court approval of similar views—the Tribunal held that section 153D approval is not a mere administrative formality. It must demonstrate conscious application of mind to each draft assessment order and each assessment year. Granting blanket approvals on the same day for numerous cases was held to be humanly impossible to involve proper scrutiny and therefore invalid.
Since the jurisdictional defect went to the root of the matter, the Tribunal quashed the entire assessments without examining the merits of additions, leaving all other grounds open. All the appeals were accordingly allowed on the legal ground.
FULL TEXT OF THE ORDER OF ITAT DELHI
