Bhupendra Autotech Industries Pvt. Ltd. Vs DCIT (ITAT Delhi)
The assessee filed appeals against the orders of the Commissioner of Income-tax (Appeals)-3, Gurgaon, relating to Assessment Years 2010-11 to 2013-14. The assessments had been framed by the Assessing Officer under Section 153A(1)(b) of the Income-tax Act. One of the principal grounds raised by the assessee challenged the validity of the assessments on the basis that the approval granted under Section 153D of the Act had been issued without proper application of mind and was therefore invalid.
The Department argued that Section 292BC, introduced through the Finance Act, 2026, clarified that approval under Section 153D is a supervisory and administrative function and that any deficiency in reasons would not invalidate the assessment. It was contended that the provision operated retrospectively and should apply when the Tribunal heard the appeals.
The Tribunal examined the approval granted under Section 153D and observed that the approval did not indicate whether the assessment records had been perused. It further noted that approvals covering multiple assessment years had been granted without recording satisfaction regarding the issues involved, the material relied upon, or the reasoning leading to the conclusions. The Tribunal also noted that the very same approval had previously been examined by a Coordinate Bench in another case and had been held to be in violation of settled judicial principles because it reflected a lack of application of mind. No distinguishing feature was found in the present appeals.
