RAJARSHI MOTORS PVT. LTD.,AGARTALA vs. DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE- AGARTALA , AGARTALA

Facts

The assessee, Rajarshi Motors Pvt. Ltd., a car dealership, underwent search and seizure operations u/s 132 for assessment years 2008-09 to 2014-15. Seized documents indicated a higher net profit than reported, and the MD of the group disclosed undisclosed income u/s 132(4) which was not reflected in the assessee's returns. The Assessing Officer (AO) made various additions for undisclosed income, fund diversion, and investment, but the CIT(A) provided partial relief by deleting some of these additions.

Held

The tribunal restored the core legal issue concerning the validity of assessment orders, specifically regarding the consolidated approval under Section 153D of the Act, back to the CIT(A) for re-adjudication. The CIT(A) is directed to consider facts, judicial precedents, and comments from the AO. Similarly, the issues on merits challenged by the Revenue, where the CIT(A) had granted relief, were also restored to the CIT(A) for fresh consideration in accordance with Section 250(6) of the Act.

Key Issues

Whether the assessment orders passed after a search operation were invalid due to consolidated approval under Section 153D of the Act instead of individual approval for each assessment year; and the correctness of additions made by the AO for undisclosed income, fund diversion, and investment, which were partially deleted by CIT(A).