TaxTMI 
TaxTMI 
2026 (5) TMI 304
X X X X Extracts X X X X
X X X X Extracts X X X X
.... & 9 of the grounds of appeal and the same are reproduced below :- "8. On the facts and circumstances of the case and in law, the assessment order passed by the assessing officer is contrary to the provisions of section 153D of the Income Tax Act, 1961 and CIT (A) erred in not holding so. 9. On the facts and circumstances of the case and in law, the assessment order passed by the assessing officer is liable to be quashed as there is no valid approval u/s 153D of the Act and CIT (A) erred in not holding so." 3.1 Further, Ld. AR of the assessee relied on various case laws. However, more particularly, ld. AR drew our attention towards the ITAT Delhi Bench decision viz. M/s Millenium Vinimay (P) Ltd. vs. ACIT, ITA No.458/Del/2022 dated 31.5.2024 and Hon'ble jurisdictional High Court decision in the case of PCIT vs. Shiv Kumar Nayyar in ITA No. 285/2024 (Del), dated 15.05.2024 and submitted that by following the ratio of the aforesaid two case laws and the decision of ITAT in assessee's own case (supra), the legal issue involved in the instant appeal may be allowed and pleaded to quash the assessment on the legal ground itself. 4. Per contra, ld. DR of th....
X X X X Extracts X X X X
X X X X Extracts X X X X
....e where no approval was granted at all. However, the Tribunal was of the opinion that the approval granted by the Additional Commissioner of Income Tax was without application of mind and, therefore, not a valid approval in the eye of law. Tribunal reproduced the observations made by the Additional CIT while granting approval and came to the conclusion that the same suffered from lack of application of mind. The Tribunal referred to various judgments of the Supreme Court and the High Courts in support of its conclusion that the approval whenever required under the law, must be preceded by application of mind and consideration of relevant factors before the same can be granted. The approval should not be an empty ritual and must be based on consideration of relevant material on record. 5. The learned Counsel for the Revenue submitted that the question of legality of the approval was raised by the assessee for the first time before the Tribunal. He further submitted that the Additional CIT had granted the approval. The Tribunal committed an error in holding that the same is invalid. 6. Having heard the learned Counsel for the both sides and having perused the docume....
X X X X Extracts X X X X
X X X X Extracts X X X X
....evenue against the order dated 15/03/2023 in ITA No. 43/2022 passed by the Hon'ble High Court of Orissa at Cuttack, wherein the Hon'ble High Court had quashed the Assessment Order on the ground of inadequacy in procedure adopted for issuing approval u/s 153D of the Act by expressing discordant note on such mechanical exercise of responsibility placed on designated authority under section 153D of the Act. 17. Hence, vindicated by the factual position as noted in preceding paras, we find considerable force in the arguments advanced by the Ld. the Assessee's Representative on the Additional Ground of Appeal. In our considered opinion the approvals so granted under the shelter of section 153D of the Act does not pass the test of legitimacy. The Assessment orders of various assessment years as a consequence of such inexplicable approval lacks legitimacy. Consequently, the impugned assessments orders in the captioned appeals are non-est and a nullity and hence the same are quashed. 18. In view of prima facie merits found in the legal objections raised in the Addl. Grounds of the Assessees, we do not consider it expedient to look into the aspects on merits of....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ct in the absence of a valid approval granted by the Learned Additional Commissioner of Income Tax, Central Range-7, New Delhi. 12. In the result, appeal of the assessee is allowed." 8. We further find that Hon'ble jurisdictional High Court in the case of PCIT vs. Shiv Kumar Nayyar (supra) has decided the similar legal issue in favour of the assessee and against the Revenue. The relevant findings of the Hon'ble Delhi High Court are reproduced as under :- "15. A similar view was taken by this Court in the case of Anuj Bansal (supra), whereby, it was reiterated that the exercise of powers under Section 153D cannot be done mechanically. Thus, the salient aspect which emerges from the abovementioned decisions is that grant of approval under Section 153D of the Act cannot be merely a ritualistic formality or rubber stamping by the authority, rather it must reflect an appropriate application of mind. 16. In the present case, the ITAT, while specifically noting that the approval was granted on the same day when the draft assessment orders were sent, has observed as under :- "10. We have gone through the approval granted by the ld. Addl. CIT on 30.12.....
X X X X Extracts X X X X
X X X X Extracts X X X X
....roval for 43 cases in a single day which is evident from the findings of the ITAT, succinctly encapsulated in the order extracted above. 18. Therefore, under the facts of the present case, considering the foregoing discussion and the enunciation of law settled through This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 20/05/2024 at 21:34:51 judicial pronouncements discussed hereinabove, we are unable to find any substantial question of law which would merit our consideration." 9. Respectfully following the above precedents, we quash the entire proceedings initiated under section 153A of the Act in the absence of a valid approval granted by the Ld. Addl. CIT, Central Range-4, Delhi. 10. We are refrained from adjudicating the other grounds of appeal and at this stage, we keep the other grounds of appeal open. 11. In the result, the appeal being ITA No.5754/Del/2025 for assessment year 2015-16 is allowed in the above terms. 12. Since we have allowed the assessee's appeal on legal issue, the appeal filed....
X X X X Extracts X X X X
X X X X Extracts X X X X
....8 Sh, Telu Ram Garg ACLPG9922C 2018-19 143(3) of the l. T Act. 1961 19. Sh. OM Garg AFFPG2596F 2012-13 to 2017-18 153A/143(3) of the I. T. Act, 1961 20 Sh OM Garg AFFPG2S96F 2018-19 143(3 of the I. T. Act, 1961 21. Sh. Hemant Sichdev ABLPS5025K 2012-13 to 2017.18 150W/143(3) ofthe l. T. Act. 1961 22. Sh Hemant Sachdey ABUPS5025K 2018-19 143(3) of the I. T. Act, 1961 25. Aruüni Kumar HUF AAAHA3634A 2012-13 to 2017-18 ofthe l. T. Act. 1951 24 Antani Kumar HUF FANAHA3634A 2018-19 149(3) of the L.T. Act. 1961 25. M/s Chogori Retail P AADCO2003K 2012-13 46 2017-18 153A/143(3) offthe 1. T. Act. 1961 26. M/s. Chogori Retail P Lid. AAÄICC2003K 2018-19 · 143(3) of the I. T. Act, 1961 127. M/s. G.D. Goenka Tourism Corporation AAACG3083E 2012-13 10 2017-18 153A/143(3) of the I. T. Act, 1961 28 M/s. G.D. Goenka Tourism Corporation Lid AAACG308JE 2018-19 143(3) of the I. T. Att, 1961 29. M/s. Choguri India Retail Lid. AADCC2405P 2012-13 10 2017-18 153A/143(3) of the I. T. Act, 1961 30 M/s. Chogoni Iridia Retail Lid. AADCC2405P 2018-19 143(3) of the I. T. Act, 1961 31. Sh, Raghav Gupta AEOPG8387C 2012-13 10 2017-18 15JA/143(3) of the I. T. Act. 196....