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

ITA 603/CTK/2026Status: DisposedITAT Allahabad30 September 2026AY 2017-1814 pages
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What were the facts?

The 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, for various assessment years ranging 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 approval letters were not in the prescribed form and indicated a non-application of mind by the approving authority, citing multiple approvals within a single order. 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 liable to be quashed. The reasoning was based on the observation that the approval letters were stereotype, lacked reference to any discussions or considerations between the Additional Commissioner and the Assessing Officer, and demonstrated a non-application of mind. The Tribunal noted that the Supreme Court in M/s Serajuddin & Co. emphasized the need for the approving authority to indicate its thought process and examine the draft orders, which was absent in the impugned approvals. The fact that multiple approvals were granted in a single letter further supported this conclusion. The Tribunal also referred to the Supreme Court's decision in DCIT vs. Sunil Kr. Sharma. Consequently, the assessment orders, being consequential to the invalid approvals, 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 valid when they are in a stereotype format, do not refer to discussions between authorities, and indicate a non-application of mind by the approving authority? (Question of law and fact, turns on Section 153D) Assessee's contentions: - The approval letters are not in the prescribed form and show a lack of application of mind. - Multiple approvals for multiple assessment years are granted in a single order, indicating a mechanical process. - Relied on the decision of the Hon'ble Jurisdictional High Court in M/s Serajuddin & Co. (150 taxmann.com 146) and the Hon'ble Supreme Court's dismissal of SLP in the same case (163 taxmann.com 118). - Relied on the Coordinate Bench decision in Soumendra Kumar Mohanty (ITA Nos.284-289/CTK/2025). Revenue's contentions: - The defects are technical and nominal. - Substantial justice should prevail over technicalities.

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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