Section 153D approval must be separate for each assessment year; common approval invalidates the assessment.

ITAT Delhi held that an assessment framed under section 153C read with section 143(3) of the Income-tax Act was unsustainable because the approval under section 153D was not valid. The Tribunal applied the settled principle that section 153D approval must be granted separately for each assessment year; a common approval covering multiple years for the same assessee does not satisfy the statutory requirement. On that basis, the assessment order was quashed and the issue was decided in favour of the assessee, leaving the remaining grounds academic.

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Issues: Whether the assessment framed under section 153C read with section 143(3) of the Income-tax Act, 1961 was invalid for want of a valid approval under section 153D of the Income-tax Act, 1961.

Analysis: The approval relied upon was a common approval covering multiple assessment years in respect of the same assessee. The Tribunal applied the settled position that approval under section 153D must be accorded separately for each assessment year, and a combined approval does not satisfy the statutory requirement where the assessment is made for distinct years. On that footing, the assessment order was found to be unsustainable.

Conclusion: The assessment was quashed for lack of valid approval under section 153D of the Income-tax Act, 1961, and the issue was decided in favour of the assessee.

Final Conclusion: The appeal succeeded and the remaining grounds were left academic.

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