DREAM TEAM HOSPITALITY,NEW DELHI V. ACIT CENTRAL CIRCLE 14, NEW DELHI

ITA 3146/DEL/2024

AI Insights

The case involves Dream Team Hospitality, the appellant, contesting the validity of assessments made by the ACIT, Central Circle-14, New Delhi, for the assessment years 2017-18 and 2018-19. The primary legal contention was the absence of valid approvals under section 153D of the Income-tax Act, 1961, for the assessments framed under section 153C read with section 144. The Tribunal referenced several landmark precedents which supported the necessity of separate approvals for each assessment year, leading to the quashing of the impugned assessments.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 711987 (ITAT-DELHI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-07-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Assessment Year: 2018-2019
• Other Referred Cases: PCIT Vs. Shiv Kumar Nayyar (2024) 467 ITR 186 (Del.), PCIT Vs. Anuj Bansal (2024) 466 ITR 254 (SC), PCIT Vs. MDLR Hotels (P.) Ltd. (2024) 166 taxmann.com 327 (Del.)
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: POOJA SWAROOP
• Assessee Lawyers: UDHISTER MEHTANI

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL, DELHI BENCH: ‘B’ NEW DELHI BEFORE SHRI SATBEER SINGH GODARA, JUDICIAL MEMBER AND SHRI S. RIFAUR RAHMAN, ACCOUNTANT MEMBER ITA Nos.3145 & 3146/Del/2024 Assessment Years: 2017-18 & 2018-19 Dream Team Hospitality, D-22, Third Floor, Defence Colony, New Delhi Vs. ACIT, Central Circle-14, New Delhi PAN: AANFD1149A (Appellant) (Respondent) With ITA No.3440/Del/2024 Assessment Year: 2017-18 DCIT, Central Circle-14, New Delhi Vs. Dream Team Hospitality, D-22, Third Floor, Defence Colony, New Delhi PAN: AANFD1149A (Appellant) (Respondent) ORDER PER SATBEER SINGH GODARA, JM These assessee’s twin appeals ITA Nos.3145 & 3146/Del/2024 and Revenue’s cross appeal ITA No.3440/Del/2024 for assessment years 2017-18 and 2018-19, Assessee by Sh. Udhister Mehtani, CA Department by Ms. Pooja Swaroop, CIT(DR) Date of hearing 02.07.2025 Date of pronouncement 23.07.2025 Printed from counselvise.com ITA Nos.3145 & 3146/Del/2024 & 3440/Del/2024 2 | P a g e arise against the Commissioner of Income Tax (Appeals)-26 [in short, the “CIT(A)”], New Delhi’s orders, both dated 07.05.2024, passed in case nos. 10716/2016-17 and 10488/2017-18, involving proceedings under section 153C r.w.s. 144 of the Income- tax Act, 1961 (hereinafter referred to as ‘the Act’), respectively. Heard both the parties. Case file perused. 2. It emerges at the outset that the assessee herein canvasses it’s first and foremost legal ground seeking to annul the impugned section 153C r.w.s. 144 assessments framed on 23.12.2021 for want of a valid approval under section 153D of the Act. 3. We have given our thoughtful consideration to the assessee’s and the Revenue’s respective vehement contentions regarding the first and foremost issue of validity of the impugned assessments as lacking valid approval under section 153D of the Act. The assessee in its paper-book at pages 63 has filed the prescribed authority’s common approval dated 23.12.2021 granted in both these assessment years. Various landmark precedents i.e. PCIT Vs. Shiv Kumar Nayyar (2024) 467 ITR 186 (Del.), PCIT Vs. Anuj Bansal (2024) 466 ITR 254 (SC) and PCIT Vs. MDLR Hotels (P.) Ltd. (2024) 166 taxmann.com 327 (Del.) PCIT Vs. Shiv Kumar Nayyar (2024) Printed from counselvise.com ITA Nos.3145 & 3146/Del/2024 & 3440/Del/2024 3 | P a g e 467 ITR 186 (Del.) have already settled the issues in assessee’s favour and against the department that such an approval under section 153D has to be accorded separately for each and every assessment year even if it involves a single assessee. We thus accept the assessee’s instant first and foremost legal grounds/arguments to quash the impugned assessment herein framed by the Assessing Officer on 23.12.2021 in very terms. That being the case, the assessee’s twin appeals ITA No. 3145 & 3146/Del/2024 succeed and Revenue’s appeal ITA No. 3440/Del/2024 fails. Ordered accordingly. All other pleadings on merits herein stand rendered academic. 4. To sum up, these assessee’s twin appeals ITA No.3145 & 3146/Del/2024 are allowed and Revenue’s cross appeal ITA No. 3440/Del/2024 is dismissed, in foregoing terms. A copy of this common order be placed in the respective case files. Order pronounced in the open court on 23rd July, 2025 Sd/- Sd/- (S. RIFAUR RAHMAN) (SATBEER SINGH GODARA) ACCOUNTANT MEMBER JUDICIAL MEMBER Dated: 23rd July, 2025. RK/- Copy forwarded to: 1. Appellant 2. Respondent 3. CIT Printed from counselvise.com ITA Nos.3145 & 3146/Del/2024 & 3440/Del/2024 4 | P a g e 4. CIT(A) 5. DR Asst. Registrar, ITAT, New Delhi Printed from counselvise.com "