Tarun Kumar Sahay (HUF) Vs PCIT (ITAT Delhi)
Assessee was subjected to proceedings u/s 153C pursuant to search on Alankit Group. Assessment was completed u/s 153C on 04-03-2024 after obtaining statutory prior approval u/s 153D from the Addl. CIT. Thereafter, Ld. PCIT invoked revisionary jurisdiction u/s 263 alleging that issues forming part of earlier reasons recorded u/s 148 were not properly examined in assessment u/s 153C and held the order to be erroneous & prejudicial to the interest of Revenue.
ITAT quashed the revision. Tribunal held that once an assessment u/s 153C is passed after valid approval u/s 153D, such approval forms an integral part of the assessment record. Unless the PCIT first examines, challenges or annuls the statutory approval u/s 153D, he cannot indirectly set aside the assessment by invoking section 263. The approval u/s 153D is not an empty formality but a statutory safeguard, and ignoring it renders the assumption of jurisdiction u/s 263 fundamentally defective.
Following coordinate bench decisions in Devender Kumar Gupta, Alankit Associates Pvt. Ltd. and judgment of Hon’ble MP High Court in Prakhar Developers (P.) Ltd., ITAT held that revision without touching the 153D approval is unsustainable in law. Consequently, the order passed u/s 263 was quashed and assessee’s appeal allowed.
FULL TEXT OF THE ORDER OF ITAT DELHI
