NV DISTILLERIES PVT LTD,DELHI V. DCIT,CENTRAL CIRCLE-31, DELHI

ITA 3266/DEL/2025

AI Insights

The case involves NV Distilleries Pvt. Ltd., the appellant, contesting an assessment order issued by the Deputy Commissioner of Income Tax, CC-31, New Delhi, for the assessment year 2018-19. The primary legal contention was the validity of the approval under section 153D of the Income Tax Act, 1961, which was required for the assessments following a search action. The Tribunal admitted additional legal grounds raised by the appellant, focusing on the procedural validity of the approval process for multiple assessment years under a single approval. The Tribunal referenced several precedents, including decisions from the Supreme Court and Delhi High Court, to support its findings.

• Counselvise Citation: [2026] 140 COUNSELVISE.COM (IT) 837634 (ITAT-DELHI)
• Duration Of Justice: 9 month(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-02-2026
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: E
• Assessment Year: 2018-2019
• Appeal Filed On: 16-05-2025
• Other Referred Cases: National Thermal Power Co. Ltd. vs. CIT, PCIT vs. Shiv Kumar Nayyer, Millenium Vinimay Pvt. Ltd. vs. ACIT, Allcargo Global Logistics Ltd. vs. DCIT, PCIT Vs. MDLR Hotels (P) Ltd., ACIT vs. Serajuddin and Co.
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: PRAVIN RAWAL
• Assessee Lawyers: NIRBHAY MEHTA
• Keywords: Assessment record
• Section: 143(3)

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL (DELHI BENCH ‘E’’ : NEW DELHI) BEFORE SHRI MAHAVIR SINGH, VICE PRESIDENT AND SHRI M. BALAGANESH, ACCOUNTANT MEMBER ITA No. 3266/Del/2025 Asstt. Year : 2018-19 NV Distilleries Pvt. Ltd. VS. DCIT, CC-31, NEW DELHI 10TH FLOOR, VANDANA BUILDING, 11, TOLSTOY MARG, NEW DELHI – 110 001 (PAN: AABCN4592Q) (Appellant) (Respondent) Appellant by : Sh. Nirbhay Mehta, Adv. Respondent by : Sh. Pravin Rawal, CIT(DR) Date of Hearing 17.02.2026 Date of Pronouncement 17.02.2026 ORDER PER MAHAVIR SINGH, VICE PRESIDENT : This appeal by the assessee is emanating from the order of the Ld. Commissioner of Income Tax (Appeals)-30, New Delhi in Appeal No. 30/10543/2019-20 dated 17.3.2025. Assessment was framed by the DCIT, CC-31, New Delhi vide order dated 31.12.2019 u/s. 143 of the Income Tax Act, 1961 (hereinafter referred the “Act”) relevant to assessment year 2018-19. 2. Assessee’s AR filed Application dated 2.2.2026 which has been placed on record, requesting for admission of following additional legal grounds in the instant matter which are purely legal and goes to the root of the matter and needs to be admitted, on the Printed from counselvise.com 2 | P a g e anvil of the decisions of the Hon’ble Apex Court in the case of National Thermal Power Co. Ltd. vs. CIT reported in 229 ITR 383 (SC). i. Whether on the facts and circumstances of the case, the approval granted under section 153D of the Act in the case of the appellant for AY 2018-19 through a common approval for separate assessment orders passed u/s. 153A/143(3) for AY 2015-16 to 2018-19 is considered valid in the eyes of law in view of the judgment of Hon’ble Delhi High Court in the case of PCIT vs. Shiv Kumar Nayyer 163 Taxmann.com 9 dated 15.5.2024 and Hon’ble ITAT, Delhi benceh decision in the case of Millenium Vinimay Pvt. Ltd. vs. ACIT in ITA No. 458/Del/2022. ii. Whether approval granted vide letter F.No. Addl/CIT/Cr-8/2019- 20/155 dated 31.12.2016 is valid in terms of the provisions of section 153D of the I.T. Act.” 3. We have heard both the parties at length and perused their respective submissions alongwith all the case files. 4. We note that there arises the first and foremost issue of validity of the impugned assessment framed u/s 143(3) of the Act, in consequence to the search action herein dated 20.4.2017, on the ground that the learned prescribed authority had not accorded a valid approval thereto u/s 153D of the Act. The Revenue could hardly dispute that the instant legal grounds sought to be raised at the assessee’s behest goes to the root of the matter and therefore, we quote National Thermal Power Co. Ltd. vs. CIT (1998) 229 ITR 383(SC); as considered in Allcargo Global Logistics Ltd. vs. DCIT (2012) 137 ITD 287 (SB) (Mum), that such an additional grounds could very well be allowed to be raised in section 254(1) proceedings, in order to determine the correct tax liability of an assessee provided all the relevant facts form part of the records. 5. It is in this factual backdrop that we admit the assessee’s instant legal grounds and note with the able assistance coming from both the parties that the learned Assessing Officer had sought the prescribed authority’s approval on 31.12.2023 which stood granted on 31.12.2023 itself vide common communication dated 31.12.2019, contents thereof are reproduced hereunder:- Printed from counselvise.com 3 | P a g e “Office of the Addl. Commissioner of Income Tax, Central Range-8, New Delhi, Room No. 328, 3rd floor, ARA Centre E-2, Jhandewalan Extension, New Delhi – 110 055 F.No. Addl. CIT/CR-8/2019-20/155 Dated 31.12.2019 To The Deputy Commissioner of Income Tax, Central Circle-31, New Delhi Sub: Approval u/s. 153D of the Income Tax Act, 1961 in the name of NV Group of cases – reg. Please refer to your letter F.No. DCIT/CC-31/153D/2019-20/1201 dated 31.12.2019 on the above subject. Approval is hereby accorded to the draft assessment order in the following case:- S.No. Name of the assessee PAN Asstt. Year 1. M/s NV Distilleries Pvt. Ltd. AABCN4592Q 2015-16 2. M/s NV Distilleries Pvt. Ltd. ABCN4592Q 2016-17 3. M/s NV Distilleries Pvt. Ltd. ABCN4592Q 2017-18 4. M/s NV Distilleries Pvt. Ltd. ABCN4592Q 2018-19 Assessment record is enclosed. Encl: as above Sd/- (Vinod Johri) Addl. Commissioner of Income Tax Central Range-8, New Delhi” Printed from counselvise.com 4 | P a g e 6. The clinching fact is that the learned Assessing Officer herein had infact sought a common approval on 31.12.2019 for the assessment years from 2015-16 to 2018-19 and which stood granted on the same date i.e. 3112.2019 itself, and therefore, we quote PCIT Vs. Shiv Kumar Nayyar (2024) 163 taxmann.com 9 (Del.), PCIT Vs. MDLR Hotels (P) Ltd. (2024) 166 taxmann.com 327 (Del.) and ACIT vs. Serajuddin and Co. (2024) 163 taxmann.com 118 (SC), to conclude that such a combined section 153D approval indeed vitiates the entire assessment itself. We draw strong support therefrom to quash the impugned assessment framed herein in assessee’s case in assessment year 2018-19 in very terms. Further, Ld. AR for the assessee drew our attention towards ITAT, Delhi Bench common order dated 4.2.2206 in ITA No. 3361 & 3362/Del/2025 (Ayrs. 2015-16 & 2016-17) and other group concern of the assessee for assessment years 2017-18 & 2018-19 wherein, exactly identical legal issues have been decided in favour of the assessee. 7. In view of the aforesaid factual matrix and respectfully following the aforesaid precedents, the assessee’s quantum appeal being ITA No. 3266/Del/2025 (AY 2018-19) involving the corresponding impugned assessment succeed. 8. All other pleadings on merits herein stand rendered academic. Printed from counselvise.com 5 | P a g e 9. In the result, the Assessee’s appeal is allowed in the above very terms. Order pronounced in the Open Court on 17.02.2026. Sd/- Sd/- (M. BALAGANESH) (MAHAVIR SINGH) ACCOUNTANT MEMBER VICE PRESIDENT SRBhatnaggar Date: 19-2-2026 Copy forwarded to: - 1. Appellant 2. Respondent 3. DIT 4. CIT (A) 5. DR, ITAT Assistant Registrar, ITAT, Delhi Bench Printed from counselvise.com "