2025 (2) TMI 915 - AT - Income Tax

Validity of assessment u/s 153A - invalid approval u/s 153D - HELD THAT - Violation of the mandatory provisions of section 153D of the Act which require the approval to be issued after application of mind to the assessment record and incriminating materials. We find that the case of the assessee is squarely covered on facts with the case relied by the learned DR in the case of Uttarkhand Uthan Samiti 2020 (4) TMI 878 - ITAT DELHI . Further it is now a settled provision of law that exercise of powers u/s 153D have to pass the scrutiny that the same were not exercised mechanically. The appeal of the assessee is allowed.

Summary

The Appellate Tribunal, ITAT Delhi, heard an appeal by the assessee against the Commissioner of Income Tax (Appeals) order for the assessment year 2011-12. The appeal challenged the assessment order under sections 153C and 143(3) of the Income Tax Act, 1961, due to an invalid approval under section 153D. The Tribunal admitted the ground challenging the approval, citing a similar case where approvals were deemed invalid for lack of proper scrutiny. Relying on legal precedent, the Tribunal found the approval in question to be invalid, leading to the quashing of the assessment order. The appeal was allowed, and the order was pronounced on 19.02.2025.