METRO TYRES LTD,NEW DELHI vs. ACIT, CENTRAL CIRCLE-5, NEW DELHI

The instant batch of six appeals pertains to the single assessee herein namely, Vinod Gupta against the separate orders of the Ld. CIT(A)-27, New Delhi pertaining to assessment years 2014-15, 2016-17, 2017-18, 2018-19, 2019-20 & 2020-21.

We have heard both the parties at length and perused their respective submissions alongwith all the case files.

We next note that there arises the first and foremost issue of validity of all the impugned assessments framed u/s 2 143(3) r.w.s. 153A of the Act, in consequence to the search action herein dated 23.12.2019, on the ground that the learned prescribed authority had not accorded a valid approval thereto u/s 153D of the Act. The Revenue could hardly dispute that the instant legal ground sought to be raised at the assessee’s behest goes to the root of the matter and therefore, we quote National Thermal Power Co. Ltd. vs. CIT (1998) 229 ITR 383 (SC); as considered in Allcargo Global Logistics Ltd. vs. DCIT (2012) 137 ITD 287 (SB) (Mum), that such an additional ground could very well be allowed to be raised in section 254(1) proceedings, in order to determine the correct tax liability of an assessee provided all the relevant facts form part of the records.

It is in this factual backdrop that we admit the assessee’s instant legal ground and note with the able assistance coming from both the parties that the learned Assessing Officer had sought the prescribed authority’s approval on 29.03.2023 which stood granted on 30.03.2023. The clinching fact which from page 2 in the assessee’s paper book is that the learned Assessing Officer herein had infact sought a common approval for all these assessment years from 2014-15 to 2020-21 which stood granted, and therefore, we quote PCIT Vs. Shiv Kumar Nayyar (2024) 163 taxmann.com 9 (Del.), PCIT Vs. MDLR Hotels (P) Ltd. (2024) 166 taxmann.com 327 (Del.) and ACIT vs. Serajuddin and Co. (2024) 163 taxmann.com 118 (SC), to conclude that such a combined section 153D approval indeed vitiates the entire assessment itself. We draw strong support therefrom to quash all the impugned assessments framed herein in assessee’s case in assessment years 2014-15, 2016- 17, 2017-18, 2018-19, 2019-20 & 2020-21 in very terms.