DREAM TEAM HOSPITALITY,NEW DELHI vs. ACIT CENTRAL CIRCLE 14, NEW DELHI

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ITA 3146/DEL/2024Status: DisposedITAT Delhi23 July 2025AY 2018-19Bench: SHRI SATBEER SINGH GODARA (Judicial Member), SHRI S. RIFAUR RAHMAN (Accountant Member)3 pages

In favour of the assessee: the assessee's appeal was allowed. From the AI summary of this appeal.

AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the approval under Section 153D must be accorded separately for each assessment year, even for a single assessee. Relying on various precedents, the Tribunal accepted the assessee's legal ground.

What were the facts?

The assessee filed twin appeals against orders of the CIT(A) involving proceedings under Section 153C r.w.s. 144 of the Income-tax Act, 1961. The primary contention was the lack of valid approval under Section 153D of the Act for the assessments.

What were the issues?

Validity of assessment proceedings under Section 153C r.w.s. 144 due to lack of separate approval under Section 153D for each assessment year.

Which sections of the Income-tax Act were involved?

Section 153C,Section 144,Section 153D

AI-generated summary — verify with the full judgment below

Cases cited in this judgment(2)Show list

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Income Tax Appellate Tribunal, DELHI BENCH: ‘B’ NEW DELHI

Before: SHRI SATBEER SINGH GODARA & SHRI S. RIFAUR RAHMAN

For Respondent: Ms. Pooja Swaroop, CIT(DR)
Hearing: 02.07.2025Pronounced: 23.07.2025

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.

2.

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.

3.

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

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