Vimal Kumar Vs DCIT (ITAT Delhi)
The Delhi Bench of the Income Tax Appellate Tribunal allowed the assessee’s appeal and quashed the assessment order passed under Section 143(3) of the Income-tax Act, 1961 for Assessment Year 2022-23. The appeal arose from the order dated 27.02.2026 of the Ld. Deputy Commissioner of Income Tax, Central Circle 29, Delhi, arising from the assessment order dated 30.03.2025. The assessee had filed its return of income on 31.10.2022 declaring income of Rs.2,46,42,010/-. A search was subsequently conducted upon the assessee under Section 132 on 26.09.2023. According to the submissions recorded before the Tribunal, the search proceedings indicated through incriminating material that the assessee was indulging in transactions which were not recorded in the books of accounts. The case had also been selected for compulsory scrutiny and notice under Section 143(2) was stated to have been issued on 02.06.2023. The Assessing Officer ultimately made various additions and determined taxable income at Rs.40,14,45,168/-, with the first appellate authority confirming the findings of the Assessing Officer.
The assessee pressed ground No.5 concerning the validity of the assessment before the other grounds. The assessee contended that the assessment had been completed with the approval of the Additional Commissioner of Income Tax even though the assessment itself was framed under Section 143(3), and there was no statutory requirement for obtaining such approval. Attention was drawn to paragraph 20 of the assessment order, which recorded that the order had been passed with the prior statutory approval of the Addl. Commissioner of Income Tax, (Central Range)-7, New Delhi, as conveyed through the specified DIN and letter dated 30.03.2025.
