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

ITSSA 66/CTK/2026Status: DisposedITAT Cuttack30 September 2026AY 2016-1714 pages
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What were the facts?

These appeals were filed by the assessees (Sridhar Panda, Sheetal Swagatini Panda, Sarat Chandra Panda, and Babita Panda) against the orders of the CIT(A)-2, Bhubaneswar. The appeals pertained to various assessment years from 2011-12 to 2017-18. The core issue revolved around the validity of approvals granted under Section 153D of the Income Tax Act, 1961. The assessees contended that the approvals were granted in a mechanical manner, without proper application of mind, and were not in the prescribed form. They highlighted that multiple approvals for different assessment years were often contained in a single approval letter. The revenue argued that these were technical defects and substantial justice should prevail.

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 reference to any discussion between the authorities, and showed a non-application of mind. The Tribunal cited the Supreme Court's decision in M/s Serajuddin & Co., which emphasized the need for the approving authority to indicate its thought process and examine the draft orders. The fact that multiple approvals were given in a single letter further supported the finding of non-application of mind. The Tribunal also referred to the Supreme Court's 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 in response to notices under Section 153C/153A would remain valid, and the disclosed income would not be disturbed.

What were the issues?

1. Whether the approvals granted under Section 153D of the Income Tax Act, 1961, are invalid due to non-application of mind and being in a stereotype format, thereby warranting the quashing of consequential assessment orders? (Question of law and mixed fact and law, turning on Section 153D). Assessee's contentions: The approvals were not in the prescribed form and were granted without application of mind, as evidenced by multiple approvals in a single order and a lack of discussion of specific issues. They relied on the decisions in M/s Serajuddin & Co. (Orissa High Court, affirmed by Supreme Court) and Soumendra Kumar Mohanty (ITAT Cuttack Bench). Revenue's contentions: The defects were technical and nominal, and should not lead to the quashing of approvals, especially when substantial justice is at stake.

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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