SWIFT IMPEX PRIVATE LIMITED, NEW DELHI,NEW DELHI vs. DEPUTY COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE-27, NEW DELHI, NEW DELHI

ITA 4923/DEL/2025Status: DisposedITAT Delhi20 March 2026AY 2019-2015 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the approval granted under Section 153D of the Income Tax Act, 1961, was invalid due to a lack of application of mind by the approving authority. The Tribunal noted that the wording of the approval for AY 2015-16 was identical across all assessment years under appeal. Crucially, the Tribunal reproduced the approval letter which stated, 'Approval is hereby accorded u/s 153D of the Income Tax Act, 1961 to the draft assessment order in the following case, on the basis of the detailed discussion held with you time to time, information available on record, facts mentioned in the Appraisal Report and relevant seized documents perused by you & brought to the notice of undersigned.' However, the Tribunal found that the approving authority had not perused any seized document/material, as evidenced by the assessee's submission and the content of paragraph 2 of the approval itself, which listed the assessee's income without detailing any specific seized material or discussion. The Tribunal concluded that this mechanical approval, lacking independent consideration, vitiated the assessment orders. Therefore, the assessment orders were quashed on this ground alone. The appeals were allowed.

What were the facts?

The assessee, Swift Impex Private Limited, filed six appeals before the Income Tax Appellate Tribunal (ITAT) challenging the orders of the Commissioner of Income-tax Appeals (CIT(A)) for Assessment Years (AY) 2015-16 to 2020-21. The appeals were heard together as they involved interconnected issues. The primary contention raised by the assessee's counsel pertained to the validity of the approval granted under Section 153D of the Income Tax Act, 1961, for passing assessment orders under Section 153C. The assessee argued that the approval was granted mechanically, without independent application of mind, and was a mere carbon copy across years and group entities, issued late and in breach of statutory mandate. The revenue, through its counsel, supported the actions of the lower authorities, asserting that the CIT(A) had elaborated the procedure and fulfilled the legislative requirements.

What were the issues?

1. Whether the approval granted under Section 153D of the Income Tax Act, 1961, for passing assessment orders under Section 153C is invalid due to mechanical approval without application of mind? Assessee's Contention: The assessee argued that the approval granted under Section 153D was invalid because it was done mechanically, without an independent application of mind. They contended that the proposal and approval were identical across different assessment years and group entities, issued at the last moment, and in violation of the statutory requirements. The assessee also pointed out that the approval document itself indicated a lack of perusal of seized documents and material by the approving authority, rendering the assessment order liable to be quashed. The assessee relied on a compilation of case laws, including the decision in Millienium Vinimay Pvt. Vs. ACIT Central Circle 28, Delhi. Revenue's Contention: The revenue argued that the lower authorities, specifically the CIT(A), had adequately explained the procedure followed by the approving authority for granting approval under Section 153D. They asserted that the legislative requirements of the provision were met, the approval was given separately for each year, not mechanically, and therefore, the assessment proceedings were lawful, warranting the dismissal of the appeals.

Which sections of the Income-tax Act were involved?

Section 153D,Section 153C,Section 281B

AI-generated summary — verify with the full judgment below

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

Before: SHRIS.RIFAUR RAHMAN & SHRI SUDHIR KUMAR

For Appellant: Shri Sumit Lalchandani, Adv
For Respondent: Ms. Pooja Swaroop, CIT(DR)
Hearing: 26.02.2026

Heard together (6 matters)

ITA No. 4919/Del/2025
ITA No. 4920/Del/2025
ITA No. 4921/Del/2025
ITA No. 4922/Del/2025
ITA No. 4923/Del/2025
ITA No. 4924/Del/2025

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

PER S.RIFAUR RAHMAN, AM:

1.

These six appeals are filed by the assessee against the respective orders of ld. Commissioner of Income-tax Appeals-25, New Delhi [hereinafter referred to as ‘ld. CIT (A)] for Assessment Years 2015-16 to 2020-21 respectively. Since the issues involved in these appeals are inter-connected, hence, the appeals were heard together and disposed of by this common order for the sake of convenience, by dealing with the facts of assessment year 2015-16, being the lead

The order continues below.

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