2025 (7) TMI 171 - AT - Income Tax

Assessment u/s 153A - Deficiency in approval by non-application of mind while granting approval u/s 153D - HELD THAT -Admittedly the draft assessment order was forwarded to the competent authority by letter dated 30.12.2019 mentioning that it is part of the Nagpal group of cases. Similarly by another letter dated 30.12.2019 in case of 28 assessee s covered under search on Nagpal group for various assessment years the approval u/s 153D of the Act was sought. Of them in cases of Anu Nagpal 2025 (5) TMI 1782 - ITAT DELHI Prateek Nagpal 2025 (1) TMI 651 - ITAT DELHI M/s Shiv Vani Buildcon Pvt. Ltd. 2025 (7) TMI 114 - ITAT DELHI and Shri Hari Kishan Rathi 2025 (4) TMI 1657 - ITAT DELHI the coordinate Benches have taken into consideration the same set of approval and held that on such consolidated approval for various assessment years in regard to various assessee s without reflecting in the approval that assessment records were examined in regard to the each assessee the approvals were granted and the approval were not found to be in accordance with the law and the assessments have been quashed. Assessee appeal allowed.

Summary

The Appellate Tribunal (ITAT Delhi), with Judicial Member Shri Anubhav Sharma presiding, allowed the assessee's appeal against the order dated 30.06.2023 of the Commissioner of Income-tax (Appeals) arising from assessments under section 143(3) read with section 153A of the Income Tax Act, 1961. The key issue was the alleged "deficiency in approval by non-application of mind" under section 153D, where the approval for assessment was granted on a consolidated basis for multiple assessees linked to the Nagpal group, without examining individual assessment records. Referencing coordinate Bench decisions (e.g., Anu Nagpal ITA No.3843/DEL/2024, Prateek Nagpal ITA No.466/DEL/2022), the Tribunal held that such consolidated approvals "were not found to be in accordance with the law" and assessments based on them were liable to be quashed. Accordingly, the Tribunal quashed the impugned assessment order, stating the ground is allowed and the appeal is allowed. The order was pronounced on 13.06.2025.