VIJAY KATARIA,NEW DELHI vs. ACIT CENTRAL CIRCLE-6, NEW DELHI

The captioned cross appeals, preferred by the assessee as well as the Revenue against their respective grievances, are directed against the order dated 26.02.2020 passed by the learned Commissioner of Income-tax (Appeals)-24, 832/Del/2021 New Delhi against the order of assessment for A.Y. 2006-07. Both these appeals were heard together and are being disposed of by this common order for the sake of convenience.

During the proceedings before us the learned counsel for the assessee has taken an additional ground, which is legal in nature, challenging the validity of initial assessment order passed u/s 143(3) read with section 153A of the Income- tax Act, 1961 (hereinafter referred to as the “Act), on the ground of lack of proper approval u/s 153D. The learned counsel also brought on record a copy of reply of the department on this issue received in response to RTI application. From the letter obtained from the Income Tax Department by the assessee in response to its RTI application it is clear that the Assessing Officer had sent a letter to the Additional CIT, Central Range-2, New Delhi on 27.12.2016 for granting approval u/s 153D and the same was returned on the same day i.e. 27.12.2016 to the assessing officer, according approval for passing the assessment order. The learned counsel argued that by doing so it is clear that the learned Additional CIT, Central Range-2, New Delhi had accorded approval u/s 153D in haste without making due application of mind on the assessment order as the approval had been accorded on the same day on which the request for approval was received in his office. Learned counsel, accordingly, prayed for admission and adjudication of legal additional ground. In support of his contention learned counsel relied upon the case law in the cases of National Thermal Power Co. Ltd. v. CIT [1998] 229 ITR 383 (SC); Hemal Knitting Industries v. ACIT [2010] 127 ITD 160 (Chennai) (TM); and Omega Biotech Ltd. v. ITO (ITA No. 2570/Del/15)(12.04.2019) (Delhi ITAT).

We have considered the arguments of the learned counsel on the admission of additional ground of according approval u/s 153D. Learned DR could not controvert the fact that the legal ground sought to be raised at the assessee’s behest 832/Del/2021 goes to the root of the matter, therefore, relying upon the ratio of decision of the Hon’ble Supreme court in the case of National Thermal Power Co. Ltd. (supra) as also the order of the coordinate Bench (supra), the additional ground raised by the assessee is admitted for adjudication.

In view of our decision in assessee’s appeals (supra), the appeal of the Revenue has become infructuous, hence dismissed. is dismissed.