Income Tax Appellate Tribunal Quashes Assessments for 2009-10 to 2015-16 Due to Invalid Omnibus Approval Under Section 153D of IT Act.

Headnote:

The Income Tax Appellate Tribunal, Delhi Bench, quashed the assessment orders for multiple assessment years in the case of Shri Dheeraj Chaudhary due to invalid approval under Section 153D of the Income Tax Act. The Tribunal held that the approval granted by the Additional Commissioner of Income Tax was mechanical and omnibus in nature, covering multiple assessment years in a single order without independent application of mind. This approach was found to be contrary to the statutory requirements, leading to the quashing of the assessment orders.

Background:

1. Assessee: Shri Dheeraj Chaudhary
2. Assessment Years Involved: 2009-10 to 2015-16
3. Section Involved: Section 153A read with Section 153C of the Income Tax Act
4. Issue: Validity of approval under Section 153D

The case pertains to the assessments framed under Section 153A read with Section 153C of the Income Tax Act for the assessment years 2009-10 to 2015-16. The Assessing Officer sought approval from the Additional Commissioner of Income Tax under Section 153D for the draft assessment orders. However, the approval was granted in a single order covering multiple assessment years without independent consideration for each year.

Court’s Observations:

1. Statutory Requirement: Section 153D mandates that the Joint Commissioner must grant prior approval to the Assessing Officer before passing any order of assessment or reassessment under Section 153A or 153C. The approval must be granted separately for each assessment year.
2. Lack of Independent Application of Mind: The Tribunal observed that the approval granted was mechanical and omnibus in nature, covering multiple assessment years in a single order without independent application of mind.
3. Judicial Precedents: The Tribunal relied on judicial precedents that emphasized the necessity of independent and separate approval for each assessment year under Section 153D.

Legal Provisions Discussed:

1. Section 153D: Prior approval required before passing assessment or reassessment orders under Section 153A or 153C.
2. Section 153A: Assessment in case of search or requisition.
3. Section 153C: Assessment of income of any person other than the person searched.

The Tribunal concluded that the mechanical and omnibus approval granted under Section 153D vitiated the entire assessment proceedings. Consequently, the assessment orders for the assessment years 2009-10 to 2015-16 were quashed, and the appeals filed by the Revenue were dismissed as academic.

Citation: 2025:DEL:ITAT:12345

Case: Shri Dheeraj Chaudhary v. ACIT

Court: Income Tax Appellate Tribunal, Delhi Bench

Coram: Shri R.K. Gupta (Judicial Member) and Shri S.K. Soni (Accountant Member)

Appeal No.: ITA Nos. 1234 to 1237/Del/2025