Mahesh Kumar Verma Vs DCIT (ITAT Delhi)
In Mahesh Kumar Verma Vs. DCIT , ITA Nos.301 & 807/Del/2020, AY 2017-18, order dated 31.12.2025, Delhi ITAT allowed Assessee’s appeal & dismissed Revenue’s appeal, by quashing entire assessment u/s 153A due to mechanical approval u/s 153D.
Search u/s 132 was conducted on 15.12.2017 in case of Somya Bullion & Jewellers, proprietary concern of Assessee. AO completed assessment making addition of ₹8.31 crore u/s 68 towards unexplained sales & ₹80.31 lakh towards alleged commission @1%. During appellate proceedings, Assessee raised an additional legal ground challenging validity of approval granted u/s 153D by Addl. CIT, Central Range, Meerut.
Tribunal noted that approval dated 28.12.2018 suffered from multiple fatal defects:
– Wrong search date mentioned (09.03.2017 instead of 15.12.2017)
– Single consolidated approval granted for AYs 2011-12 to 2017-18, instead of year-wise approval
– No reference to seized material, returned income, or assessed income
– Mere ritualistic statement that records were perused, without demonstrating application of mind
Relying on PCIT Vs. Shiv Kumar Nayyar (Del HC), PCIT Vs. Anuj Bansal (Del HC), PCIT Vs. Sapna Gupta (All HC), ACIT Vs. Serajuddin & Co. (Orissa HC) & other precedents, Tribunal held that approval u/s 153D is a sine qua non & cannot be granted in a mechanical or omnibus manner. Since statutory precondition itself failed, entire assessment proceedings stood vitiated. Consequently, assessment was quashed in toto, Assessee’s appeal was allowed, & Revenue’s appeal was dismissed.
FULL TEXT OF THE ORDER OF ITAT DELHI
