Search Assessments Quashed Due to Defective Section 153D Approval

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:

Heard both the parties at length. Case files perused.