DILEEP KUMAR GUPTA,DELHI vs. DCIT, CENTRAL CIRCLE-31, NEW DELHI

ITA 3592/DEL/2023Status: DisposedITAT Delhi21 January 2026AY 2013-1446 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the approval granted under Section 153D of the Act by the Joint CIT was mechanical and without due application of mind. This rendered the approval proceeding an empty ritual, not mandated by the Act or supported by judicial precedents. The Tribunal relied on decisions of the Delhi High Court and Orissa High Court, whose Special Leave Petitions were dismissed by the Supreme Court, thereby attaining finality. Consequently, the assessment orders for AY 2013-14 and AY 2014-15 were quashed as void ab initio. The Tribunal allowed Ground of Appeal No. 1, stating that since the entire assessment was quashed, the adjudication of other grounds became academic and were left open. The operative direction was to quash the assessment orders.

What were the facts?

The assessee, Dileep Kumar Gupta, filed appeals against orders of the CIT(A) for Assessment Years (AY) 2013-14 and 2014-15. These orders arose from assessment orders passed under Section 153A read with Section 143(3) of the Income Tax Act, 1961. A search action under Section 132 was conducted on 06.01.2021 at the premises of the Hans Group, of which the assessee is a member. Subsequently, notices under Section 153A were issued. For AY 2013-14, the Assessing Officer (AO) assessed income at INR 24,21,128/- against the declared income of INR 23,88,250/-. For AY 2014-15, the facts are stated to be identical. The CIT(A) dismissed the assessee's appeals in both cases.

What were the issues?

The Tribunal had to decide the following questions: 1. Whether the assessment order passed by the AO is liable to be quashed as it is contrary to the provisions of Section 153D of the Income Tax Act, 1961, and whether the CIT(A) erred in not holding so. The assessee contended that the approval granted by the Joint CIT under Section 153D was mechanical, citing a co-ordinate bench decision in the assessee's own case for other AYs. The revenue argued that the approval was not mechanical and was granted for a single assessee for a single AY, supported by documents and an affidavit. 2. Whether the assessment order is non-est as it does not have a Document Identification Number (DIN) in its body, and whether the CIT(A) erred in not holding so. (This issue was not explicitly decided as the appeals were allowed on other grounds). 3. Whether the CIT(A) erred in confirming the addition of Rs. 32,878/- (for AY 2013-14) and Rs. 88,005/- (for AY 2014-15) made by the AO on account of alleged cash commission income. (This issue was not explicitly decided as the appeals were allowed on other grounds). 4. Whether the addition of alleged cash commission income is beyond the scope of Section 153A of the Act, and whether the CIT(A) erred in not holding so. (This issue was not explicitly decided as the appeals were allowed on other grounds).

Which sections of the Income-tax Act were involved?

Section 153D,Section 153A,Section 143(3),Section 132,Section 143(2),Section 142(1),Section 139,Section 144A

AI-generated summary — verify with the full judgment below

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

Before: SHRI ANUBHAV SHARMA & SHRI MANISH AGARWAL

For Appellant: Shri Pranav Yadav, Adv
For Respondent: Ms. Pooja Swaroop, CIT DR
Hearing: 07.01.2026Pronounced: 21.01.2026

PER MANISH AGARWAL, AM : Both the captioned appeals are filed by assessee against the separate orders, both dated 14.11.2023 of Ld. Commissioner of Income Tax (A)-30, New Delhi [“Ld. CIT(A)”] in Appeal No. 10108/2012-13 and 10115/2013-14 passed u/s 250 of the Income Tax Act, 1961 [‘the Act”] arising out of different assessment orders, both dated 30.03.2022 passed u/s 153A

r.w.s. 143(3) of the Act pertaining to Assessment Years 2013-14 & 2014-15 respectively.

ITA Nos. 3592 & 3593/DEL/2023 interlinked and related to th

The order continues below.

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