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Facts
The assessee filed appeals against the order of the CIT(A) concerning assessment years 2017-18 and 2018-19. The core issue was the validity of assessments made under Section 153C r.w.s. 144 of the Income-tax Act, 1961.
Held
The Tribunal held that the approval required under Section 153D of the Act must be accorded separately for each assessment year, even if for a single assessee. Relying on precedents, the Tribunal quashed the assessments due to lack of proper approval.
Key Issues
Whether the approval granted under Section 153D of the Income Tax Act, 1961, for assessments under Section 153C r.w.s. 144 was valid when it was a common approval for multiple assessment years.
Sections Cited
153C, 144, 153D
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Income Tax Appellate Tribunal, DELHI BENCH: ‘B’ NEW DELHI
Before: SHRI SATBEER SINGH GODARA & SHRI S. RIFAUR RAHMAN
Date of hearing 02.07.2025 Date of pronouncement 23.07.2025 ORDER PER SATBEER SINGH GODARA, JM These assessee’s twin appeals & 3146/Del/2024 and Revenue’s cross appeal for assessment years 2017-18 and 2018-19, arise against the Commissioner of Income Tax (Appeals)-26 [in short, the “CIT(A)”], New Delhi’s orders, both dated 07.05.2024, passed in case nos. 10716/2016-17 and 10488/2017-18, involving proceedings under section 153C r.w.s. 144 of the Income- tax Act, 1961 (hereinafter referred to as ‘the Act’), respectively. Heard both the parties. Case file perused.
It emerges at the outset that the assessee herein canvasses it’s first and foremost legal ground seeking to annul the impugned section 153C r.w.s. 144 assessments framed on 23.12.2021 for want of a valid approval under section 153D of the Act.
We have given our thoughtful consideration to the assessee’s and the Revenue’s respective vehement contentions regarding the first and foremost issue of validity of the impugned assessments as lacking valid approval under section 153D of the Act. The assessee in its paper-book at pages 63 has filed the prescribed authority’s common approval dated 23.12.2021 granted in both these assessment years. Various landmark precedents i.e. PCIT Vs. Shiv Kumar Nayyar (2024) 467 ITR 186 (Del.), PCIT Vs. Anuj Bansal (2024) 466 ITR 254 (SC) and PCIT Vs. MDLR Hotels (P.) Ltd. (2024) 166 taxmann.com 327 (Del.) PCIT Vs. Shiv Kumar Nayyar (2024)
2 | P a g e 467 ITR 186 (Del.) have already settled the issues in assessee’s favour and against the department that such an approval under section 153D has to be accorded separately for each and every assessment year even if it involves a single assessee. We thus accept the assessee’s instant first and foremost legal grounds/arguments to quash the impugned assessment herein framed by the Assessing Officer on 23.12.2021 in very terms. That being the case, the assessee’s twin appeals & 3146/Del/2024 succeed and Revenue’s appeal fails. Ordered accordingly.
All other pleadings on merits herein stand rendered academic. 4. To sum up, these assessee’s twin appeals & 3146/Del/2024 are allowed and Revenue’s cross appeal is dismissed, in foregoing terms. A copy of this common order be placed in the respective case files. Order pronounced in the open court on 23rd July, 2025 Sd/- Sd/- (S. RIFAUR RAHMAN) (SATBEER SINGH GODARA) ACCOUNTANT MEMBER JUDICIAL MEMBER Dated: 23rd July, 2025. RK/- Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 3 | P a g e