MUKESH KUMAR,DELHI V. ACIT, CENTRAL CIRCLE-13, DELHI

ITA 1689/DEL/2024

AI Insights

The case involves a series of appeals by Sh. Mukesh Kumar and M/s. Mahashiv Metal and Alloys Pvt. Ltd. against the orders of the CIT(A) which had partly upheld the assessments made by the Assessing Officers under sections 153A and 153C of the Income Tax Act. These assessments were based on incriminating materials seized during a search operation. The Tribunal, however, found that the assessments were invalid due to a lack of proper adherence to the procedural requirements under section 153D, which mandates a common approval for such assessments. This procedural flaw led to the quashing of all assessments in question.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 791074 (ITAT-DELHI)
• Duration Of Justice: 1 year(s) 7 month(s) 28 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-12-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: E
• Assessment Year: 2017-2018
• Appeal Filed On: 12-04-2024
• 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: Section 153A, Section 143(3), Section 153C, Section 153D
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: AMISHA S. GUPTA
• Section: 143(3); 153A

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL, DELHI BENCH: ‘E’ NEW DELHI BEFORE SHRI SATBEER SINGH GODARA, JUDICIAL MEMBER AND SHRI MANISH AGARWAL, ACCOUNTANT MEMBER ITA Nos.1683 to 1689/Del/2024 Assessment Years: 2011-12 to 2017-18 Sh. Mukesh Kumar, D-112, Gali No.4, Ganga Vihar, Delhi Vs. ACIT, Central Circle-13, Delhi PAN: AHHPK0804A (Appellant) (Respondent) With ITA No.1651/Del/2024 Assessment Year: 2014-15 ACIT, Central Circle-2, Kanpur Vs. Sh. Mukesh Kumar, D-112, Gali No.4, Ganga Vihar, Delhi PAN: AHHPK0804A (Appellant) (Respondent) With ITA Nos.2791 & 2792/Del/2022 Assessment Years: 2013-14 & 2014-15 DCIT, Central Circle-13, New Delhi Vs. M/s. Mahashiv Metal and Alloys Pvt. Ltd., D-113, Gali No. 4, Ganga Vihar, New Delhi PAN: AAFCM3345L (Appellant) (Respondent) Assessee by None Department by Ms. Amisha S. Gupta, CIT(DR) Date of hearing 04.12.2025 Date of pronouncement 10.12.2025 Printed from counselvise.com ITA Nos. 1683 to 1689/Del/2024 ITA No.1651/Del/2024 ITA Nos. 2791 & 2792/Del/2022 2 | P a g e ORDER PER SATBEER SINGH GODARA, JM The instant batch of ten cases involves the twin assessees herein, namely, Sh. Mukesh Kumar and M/s. Mahashiv Metal and Alloys Pvt. Ltd. All other relevant details thereof stand tabulated as under: Sl. No. Appeal No. Appellant Respondent Order Appealed against 1. ITA No. 1683/Del/2024 for AY: 2011-12 Sh. Mukesh Kumar ACIT, Central Circle-13, Delhi CIT(A)-28, New Delhi’s order dated 12.02.2024 passed in case no. 26/10422/2018-19, involving proceedings under Section 153A r.w.s.143(3) of the Act. 2. ITA No. 1684/Del/2024 for AY: 2012-13 Sh. Mukesh Kumar ACIT, Central Circle-13, Delhi CIT(A)-28, New Delhi’s order dated 12.02.2024 passed in case no. 26/10423/2018-19, involving proceedings under Section 153A r.w.s.143(3) of the Act. 3. ITA No. 1685/Del/2024 for AY: 2013-14 Sh. Mukesh Kumar ACIT, Central Circle-13, Delhi CIT(A)-28, New Delhi’s order dated 12.02.2024 passed in case no. 26/10425/2018-19, involving proceedings under Section 153A r.w.s.143(3) of the Act. 4-5 ITA No. 1686/Del/2024 for AY: 2014-15 Sh. Mukesh Kumar ACIT, Central Circle-13, Delhi CIT(A)-28, New Delhi’s order dated 13.02.2024 passed in case no. 26/10427/2018-19, involving proceedings under Section 153A r.w.s.143(3) of the Act. ITA No. 1651/Del/2024 for AY: 2014-15 ACIT, Central Circle-2, Delhi Sh. Mukesh Kumar 6. ITA No. 1687/Del/2024 for AY: 2015-16 Sh. Mukesh Kumar ACIT, Central Circle-13, Delhi CIT(A)-28, New Delhi’s order dated 13.02.2024 passed in case no. 26/10428/2018-19, involving proceedings under Section 153A r.w.s.143(3) of the Act. 7. ITA No. 1688/Del/2024 for AY: 2016-17 Sh. Mukesh Kumar ACIT, Central Circle-13, Delhi CIT(A)-28, New Delhi’s order dated 13.02.2024 passed in case no. 26/10429/2018-19, involving proceedings under Section 153A r.w.s.143(3) of the Act. 8. ITA No. 1689/Del/2024 for AY: 2017-18 Sh. Mukesh Kumar ACIT, Central Circle-13, Delhi CIT(A)-28, New Delhi’s order dated 14.02.2024 passed in case no. 26/10468/2018-19, Printed from counselvise.com ITA Nos. 1683 to 1689/Del/2024 ITA No.1651/Del/2024 ITA Nos. 2791 & 2792/Del/2022 3 | P a g e involving proceedings under Section 143(3) of the Act. 9. ITA No. 2791/Del/2022 for AY: 2013-14 DCIT, Central Circel-13, New Delhi M/s. Mahashiv Metal and Alloys Pvt. Ltd. CIT(A)-28, New Delhi’s order dated 26.09.2022 passed in case no. 26/10347/2018-19, involving proceedings under Section 153C r.w.s. 143(3) of the Act. 10. ITA No. 2792/Del/2022 for AY: 2014-15 DCIT, Central Circel-13, New Delhi M/s. Mahashiv Metal and Alloys Pvt. Ltd. CIT(A)-28, New Delhi’s order dated 26.09.2022 passed in case no. 26/10364/2018-19, involving proceedings under Section 153C r.w.s. 143(3) of the Act. Cases called twice. None appears at the assessees’ behest. They are accordingly proceeded ex-parte. 2. It next emerges during the course of hearing with very valuable assistance coming from the Revenue side that the instant set of ten cases involving the twin assessees herein i.e. Sh. Mukesh Kumar and M/s. Mahashiv Metal and Alloys Pvt. Ltd., emanates from a common search action carried out by the learned departmental authorities on 23.07.2015 in different business and residential premises of Sh. Deepak Agarwal, Sh. Mukesh Kumar and other group of companies at Delhi wherein it was stated to have found/seized a lot of incriminating material indicating them to be accommodation entry providers through their various shell entities including, Sh. Mukesh Kumar and M/s. Mahashiv Metal and Alloys Pvt. Ltd. herein. This made the learned Assessing Officer(s) to initiate section 153A proceedings against Sh. Mukesh Printed from counselvise.com ITA Nos. 1683 to 1689/Del/2024 ITA No.1651/Del/2024 ITA Nos. 2791 & 2792/Del/2022 4 | P a g e Kumar and section 153C proceedings in case of M/s. Mahashiv Metal and Alloys Pvt. Ltd. And that the learned Assessing Officer framed all of his corresponding assessments inter alia adding various amounts on “substantive” basis mainly in the appellant Sh. Mukesh Kumar’s hands and partly in case of M/s. Mahashiv Metal and Alloys Pvt. Ltd.; involving varying sums. Learned CIT(A)’s lower appellate discussion has partly upheld the same. It is in this factual backdrop that both these assessees preferred their respective appeals before the CIT(A) wherein he has granted part relief to them which leaves the department aggrieved as well. 3. We thus clarify in this factual backdrop that Sh. Mukesh Kumar as well as the department’s pleadings reiterate their respective stands in entirety against and in support of the CIT(A)’s action granting part relief in the foregoing terms. Learned CIT(DR) Ms. Amisha S. Gupta vehemently argues that we ought to uphold the Assessing Officer(s)’ action herein in entirety inter alia treating Sh. Mukesh Kumar as an accommodation entry provider who has been held as assessable qua the main accommodation entry component and the remaining portion @ 20% has been held taxable Printed from counselvise.com ITA Nos. 1683 to 1689/Del/2024 ITA No.1651/Del/2024 ITA Nos. 2791 & 2792/Del/2022 5 | P a g e in M/s. Mahashiv Metals and Alloys Pvt. Ltd.’s case. Her case therefore is that the learned CIT(A)’s lower appellate discussion granting part as well as full relief; as the case may be, does not deserve to be sustained. 4. We have given our thoughtful consideration to the assessees’ as well as Revenue’s respective stands all along. A combined perusal of all these ten cases indicates that there arises yet another legal issue that all these impugned assessments are not sustainable in law as the learned prescribed authority had accorded a common approval under section 153D of the Act on 24.12.2018. Learned CIT(A)’s identical detailed discussion at page 6 para 3.1 in M/s. Mahashiv Metal and Alloys Pvt. in assessment year 2013-14 reveals that the Addl. CIT, Central Range-4, New Delhi had granted a common approval in 49 cases involving many assessees for assessment years 2010-11 to 2016-17. The factual position is hardly different in Sh. Mukesh Kumar’s cases as well as such a common approval dated 28.12.2018 is very much evident in the CIT(A)’s lower appellate discussion at pages 43 (para 8) to page 44 (para 9) therein. This clinching factual position has gone unrebutted from the Revenue side. Various recent landmark Printed from counselvise.com ITA Nos. 1683 to 1689/Del/2024 ITA No.1651/Del/2024 ITA Nos. 2791 & 2792/Del/2022 6 | P a g e 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.) appear to have settled the issue in assessees’ favour and against the department that such a combined approval under section 153D and the consequential assessment framed therefore is a nullity. We thus accept the assessees’ instant first and foremost legal issue to quash all the impugned assessments herein framed by the Assessing Officer(s) u/s 153A or 153C of the Act; as the case may be, in very terms. All other pleadings on merits herein stand rendered academic. 5. To sum up, the assessee Sh. Mukesh Kumar’s seven appeals ITA Nos. 1683 to 1689/Del/2024 are allowed in above terms and the Revenue’s three appeals ITA No.2791 & 2792/Del/2022 (M/s. Mahashiv Metal and Alloys Pvt. Ltd.) and 1651/Del/2024 (Sh. Mukesh Kumar); are dismissed in above terms. A copy of this common order be placed in the respective case files. Order pronounced in the open court on 10th December, 2025 Sd/- Sd/- (MANISH AGARWAL) (SATBEER SINGH GODARA) ACCOUNTANT MEMBER JUDICIAL MEMBER Dated: 10th December, 2025. Printed from counselvise.com ITA Nos. 1683 to 1689/Del/2024 ITA No.1651/Del/2024 ITA Nos. 2791 & 2792/Del/2022 7 | P a g e RK/- Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(A) 5. DR Asst. Registrar, ITAT, New Delhi Printed from counselvise.com "