BABITA PANDA,BHUBANESWAR vs. DCIT, CENTRAL CIRCLE 1, BHUBANESWAR

ITA 603/CTK/2026Status: DisposedITAT Cuttack30 September 2026AY 2017-1814 pages
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What did the Tribunal hold?

The Tribunal held that the approvals granted under Section 153D were unsustainable and consequently quashed. The reasoning was based on the observation that the approval letters were stereotype, lacked any reference to discussions or issues considered between the Additional Commissioner and the Assessing Officer, and demonstrated a non-application of mind. The Tribunal relied on the Hon'ble Supreme Court's decision in M/s Serajuddin & Co., which emphasized that the approving authority must show some indication of having examined the draft orders, even if elaborate reasons are not provided. The fact that multiple approvals were granted in a single letter further supported the finding of a lack of due diligence. The Tribunal also referred to the decision in DCIT vs. Sunil Kr. Sharma. As the approvals were quashed for want of sanctity, the consequential assessment orders were also quashed. However, the Tribunal clarified that the returns of income filed by the assessees in response to notices under Section 153C/153A would remain valid, and the tax on the disclosed income would be recoverable.

What were the facts?

These are appeals filed by multiple assessees (Sridhar Panda, Sheetal Swagatini Panda, Sarat Chandra Panda, and Babita Panda) against the orders of the CIT(A)-2, Bhubaneswar. The assessment years involved range from 2011-12 to 2017-18. The core of the dispute revolves around the validity of approvals granted under Section 153D of the Income Tax Act, 1961. The assessees contend that these approvals were granted in a mechanical manner, without proper application of mind, and were not in the prescribed form. The revenue argued that these were technical defects that should not lead to the quashing of approvals, especially when substantial justice is at stake.

What were the issues?

1. Whether the approvals granted by the Joint Commissioner of Income Tax (JCIT) under Section 153D of the Income Tax Act, 1961, are valid when they appear to be granted in a mechanical manner without proper application of mind and in a non-prescribed format? Assessee's Contentions: - The approvals granted are stereotype and show a non-application of mind by the approving authority. - Multiple approvals for multiple assessment years were granted in a single order, indicating a lack of due diligence. - The issue is covered by the decision of the Hon'ble Jurisdictional High Court in M/s Serajuddin & Co. (150 taxmann.com 146) and subsequently affirmed by the Hon'ble Supreme Court. - Consequently, the assessments based on these invalid approvals should be quashed. Revenue's Contentions: - The defects in the approval process are technical and nominal. - Technicalities should not prevail over substantial justice.

Which sections of the Income-tax Act were involved?

Section 153D,Section 153C,Section 153A

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Heard together (2 matters)

ITA 602/CTK/2026
ITA 603/CTK/2026

Read from the judgment's own cause title. This page is filed under one of them.

IN THE INCOME TAX APPELLATE TRIBUNAL CUTTACK BENCH CUTTACK (THROUGH HYBRID HEARING AT KOLKATA) BEFORE SHRI GEORGE MATHAN, JUDICIAL MEMBER AND SHRI GOPALAN GURUSAMY, ACCOUNTANT MEMBER IT(SS)A Nos.46 to 52/CTK/2026 (निर्धारणवर्ा / Assessment Years: 2015-16, 2011-12 to 2017-18) Sridhar Panda Vs DCIT, Central Circle-1, Bhubaneswar At Mulkaida PO Anantapur, Balasore - 756046, Odisha PAN No. : AWUPP6598C (अपीलधर्थी/Appellant) .. (प्रत्यर्थी / Respondent) IT(SS)A Nos.53 & 54/CTK/2026 (निर्धारणवर्ा / Assessment Years: 2015-16 & 2017-18) Sheetal Swagatini Panda Vs DCIT, Central Circle-1, Bhubaneswar Plot – 3646/3706, Lane I, Gouri Nagar, BBSR, Bhubaneswar- 751002, Odisha PAN No. : CLFPP3941K (अपीलधर्थी/Appellant) (प्रत्यर्थी / Respondent) .. IT(SS)A Nos.55 to 60 & ITA 602/CTK/2026 (निर्धारणवर्ा / Assessment Years: 2014-15, 2011-12 to 2013-14, 2015- 16 to 2016-17 & 2017-18) Sarat Chandra Panda Vs DCIT, Central Circle-1, Bhubaneswar Plot – 3646/3706, Lane I, Gouri Nagar, BBSR, Bhubaneswar- 751002, Odisha PAN No. : AHCPP6982F (अपीलधर्थी/Appellant) .. (प्रत्यर्थी / Respondent)

IT(SS)A Nos.61 to 66 & ITA 603/CTK/2026 (निर्धारणवर्ा / Assessment Years:2011-12 to 2016-17 & 2017-18) Babita Panda Vs

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