PCIT Vs Shiv Kumar Nayyar (Delhi High Court)
The case of PCIT vs. Shiv Kumar Nayyar before the Delhi High Court revolves around the legality of an assessment order issued under the Income Tax Act, 1961. The primary issue at hand is whether the requisite approval under Section 153D of the Act was obtained in accordance with the law.
The background of the case involves a search and seizure operation conducted by the Investigation Wing in Nayyar Group of cases, including the residential premises of the assessee, on 18.11.2016 under Section 132 of the Act. Subsequently, a survey operation under Section 133A of the Act was carried out. Following these operations, an order under Section 127 of the Act was passed, leading to the centralization of the assessee’s case. A notice under Section 153A of the Act was issued to the assessee, and eventually, an assessment order was passed by the assessing officer under Section 153A read with Section 143(3) of the Act.
However, the legality of this assessment order was challenged before the ITAT, which held it to be illegal due to the lack of appropriate approval under Section 153D of the Act. The crux of the matter lies in the approval process, with the ITAT finding fault with the mechanical nature of the approval granted by the competent authority.
