ACIT Vs Honey Arora (ITAT Delhi)
Mechanical Common Approval under Section 153D Invalid: Delhi ITAT Quashes All Search Assessments in Honey Arora’s Case
The Delhi Bench of the ITAT quashed the search assessments framed under section 153A for AYs 2010-11 to 2019-20 in the case of Sh. Honey Arora, holding that the mandatory approval under section 153D was invalid as it was granted through a single, combined approval for multiple assessment years.
The Tribunal noted that the prescribed authority had accorded one consolidated approval dated 23.04.2021 covering ten assessment years, which is impermissible in law. Relying on binding precedents—PCIT v. Shiv Kumar Nayyar (Delhi HC), PCIT v. Anuj Bansal (SC), and PCIT v. MDLR Hotels (Delhi HC)—the ITAT reiterated that section 153D requires a separate, year-specific application of mind and approval for each assessment year, even if the assessee is the same.
Since the defect went to the root of jurisdiction, the entire set of assessments was held null and void. Consequently, all five Revenue appeals were dismissed and the assessee’s cross-objections were allowed, rendering all issues on merits academic.
FULL TEXT OF THE ORDER OF ITAT DELHI
The instant batch of ten cases pertains to the single assessee herein, namely, Sh. Honey Arora. All other relevant details thereof are tabulated as under:
| Sl. No. | Appeal No. | Appellant | Respondent | Order Appealed against |
|---|---|---|---|---|
| 1-2 | ITA No. 889/Del/2025 WITH C.O. No. 259/Del/2025 for AY: 2010-11 |
ACIT, Central Circle-25, New Delhi | Honey Arora, Delhi |
CIT(A), Delhi’s-31’s order dated 13.11.2024 having DIN & Order No. ITBA/APL/S/250/2024-25/1070340573(1) involving proceedings under Section 153A of the Act. |
| 3-4 | ITA No.998/Del/2025 WITH C.O. No. 260/Del/2025 for AY: 2016-17 |
ACIT, Central Circle-25, New Delhi | Honey Arora, Delhi |
CIT(A), Delhi-31’s order dated 13.11.2024 having DIN & Order No. ITBA/APL/S/250/2024-25/1070340951(1) involving proceedings under Section 153A of the Act. |
| 5-6 | ITA No.1012/Del/2025 WITH C.O. No. 261/Del/2025 for AY: 2017-18 |
ACIT, Central Circle-25, New Delhi | Honey Arora, Delhi |
CIT(A), Delhi-31’s order dated 13.11.2024 having DIN & Order No. ITBA/APL/S/250/2024-25/1070340726(1) involving proceedings under Section 153A of the Act. |
| 7-8 | ITA No.1014/Del/2025 WITH C.O. No. 262/Del/2025 for AY: 2018-19 |
ACIT, Central Circle-25, New Delhi | Honey Arora, Delhi |
CIT(A), Delhi-31’s order dated 13.11.2024 having DIN & Order No. ITBA/APL/S/250/2024-25/1070340684(1) involving proceedings under Section 153A of the Act. |
| 9-10 | ITA No.1015/Del/2025 WITH C.O. No. 263/Del/2025 for AY: 2019-20 |
ACIT, Central Circle-25, New Delhi | Honey Arora, Delhi |
CIT(A), Delhi-31’s order dated 13.11.2024 having DIN & Order No. ITBA/APL/S/250/2024-25/1070340626(1) involving proceedings under Section 153A of the Act. |
Heard both the parties at length. Case files perused.
2. It emerges during the course of hearing that there arises the first and foremost issue of validity of the impugned assessments itself as the learned prescribed authority herein had accorded its combined approval dated 23rd April, 2021 (page 557 of the paper-book) for ten assessment years 2010-11 to 2019-20 in the assessee’s case. Various recent landmark precedents i.e. PCIT Vs. Shiv Kumar Nayyar (2024) 467 ITR 186 (Del.), PCIT Vs. Anuj Bansal (2024) 466 ITR 254 (SC) and PCIT Vs. MDLR Hotels (P.) Ltd. (2024) 166 taxmann.com 327 (Del.) have already settled the issue in assessee’s favour and against the department that such an approval under section 153D has to be accorded separately for each and every assessment year even if it involves a single assessee. We thus accept the assessee’s instant first and foremost legal ground/argument to quash the impugned assessment herein framed by the learned Assessing Officer on 24.04.2021 in very terms.
All other pleadings between the parties on merits are hereby rendered academic.
3. These Revenue’s five appeals ITA Nos.889, 998, 1012, 1014 & 1015/Del/2025 are dismissed and assessee’s cross objections C.O. Nos.259 to 263/Del/2025 are allowed in above terms. A copy of this common order be placed in the respective case files.
Order pronounced in the open court on 9th January, 2026
