PCIT Vs Subash Dabas & Anr. (Delhi High Court)
The Delhi High Court considered appeals filed by the Revenue challenging two orders dated 25 November 2021 passed by the Income Tax Appellate Tribunal (ITAT). The Tribunal had dismissed the Revenue’s appeals on the ground that the assessment orders lacked proper approval under Section 153D of the Income Tax Act, 1961. The dispute related to Assessment Years 2009–10, 2010–11 and 2011–12. As both appeals raised a common issue, they were decided together.
The case arose following a search and seizure operation conducted on 14 September 2010 under Section 132 of the Act in connection with the Dabas Group. The premises of the assessee were also searched. Subsequently, on 18 October 2012, the case of the assessee was centralized under Section 127 of the Act and a notice under Section 153A dated 22 October 2012 was issued. The assessee filed his return of income declaring a total income of ₹2,69,85,790.
Thereafter, the Assessing Officer passed an assessment order under Sections 143(3) and 153A of the Act determining the total income at ₹19,19,39,713. The additions included amounts under Sections 68 and 69 of the Act, disallowance of personal expenses, and initiation of penalty proceedings under Section 271(1)(c).
