SWD Industries Vs PCIT (Central) (ITAT Mumbai)
Sec 263 Quashed – PCIT Cannot Revise U/s 153C Assessment Without Challenging U/s 153D Approval
Search assessments u/s 153C r.w.s. 143(3) were completed after mandatory approval u/s 153D. PCIT invoked revision u/s 263 alleging lack of enquiry on accommodation entries based on Alankit group search material.
ITAT held:
- Approval u/s 153D is not a mere formality; it is a statutory safeguard involving application of mind
- Once assessment is passed with such approval, it becomes integral part of assessment record
- PCIT must examine & dislodge validity of 153D approval first before invoking 263
- In present case:
- No finding that approval was erroneous or without application of mind
- Revision based only on alleged inadequate enquiry → not sufficient for 263
Relying on multiple precedents (Devender Kumar Gupta, Prakhar Developers, etc.), ITAT held that 263 cannot be invoked on 153C/153A orders approved u/s 153D without examining such approval
FULL TEXT OF THE ORDER OF ITAT MUMBAI
These appeals are filed by the assessee against the separate orders passed by the learned Principal Commissioner of Income Tax (Central), Mumbai-1 [hereinafter referred to as “PCIT”] under section 263 of the Income Tax Act, 1961[hereinafter referred to as “the Act”] for different assessment years. Since the facts, issues and grounds involved in all the appeals are identical and arise out of a common set of proceedings initiated pursuant to search in the Alankit group cases, these appeals were heard together and are disposed of by this consolidated order for the sake of convenience and brevity.
