REALTIME MARKETING PVT LTD.,NEW DELHI V. DCIT CENTRAL CIRCLE-31, NEW DELHI

ITA 1197/DEL/2023

AI Insights

The case involves Realtime Marketing Pvt. Ltd., which appealed against the order of the Commissioner of Income Tax (Appeals)-30, New Delhi, concerning an assessment made under Section 153A of the Income-tax Act, 1961 for the assessment year 2017-18. The primary contention was the validity of the search assessment proceedings, specifically the consolidated approval granted under Section 153D for various assessment years, which the assessee argued was not in compliance with the statutory requirements. The tribunal, referencing a decision by the Third Member of the Delhi Tribunal in a similar context, found the consolidated approval to be invalid, leading to the quashing of the assessment proceedings.

• Counselvise Citation: [2026] 140 COUNSELVISE.COM (IT) 838339 (ITAT-DELHI)
• Duration Of Justice: 2 year(s) 9 month(s) 26 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-02-2026
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: 2017-2018
• Appeal Filed On: 24-04-2023
• Other Referred Cases: Dheeraj Chaudhary Vs. ACIT
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: DAYAINDER SINGH SIDHU
• Assessee Lawyers: NIRBHAY MEHTA
• Keywords: Revised return
• Section: 132; 153A

Judgement Text

"Page | 1 INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “C”: NEW DELHI BEFORE SHRI C. N. PRASAD, JUDICIAL MEMBER AND SHRI M. BALAGANESH, ACCOUNTANT MEMBER ITA No. 1197/Del/2023 (Assessment Year: 2017-18) Realtime Marketing Pvt. Ltd, 9B, Vandana Building, 11, Tolstoy Marg, New Delhi Vs. DCIT, Central Circle-31, New Delhi (Appellant) (Respondent) PAN: AACCR1956R Assessee by : Shri Nirbhay Mehta, Adv Revenue by: Shri Dayainder Singh Sidhu, CIT DR Date of Hearing 13/01/2026 Date of pronouncement 20/02/2026 O R D E R PER M. BALAGANESH, A. M.: 1. The appeal in ITA No.1197/Del/2023 for AY 2017-18, arises out of the order of the ld Commissioner of Income Tax (Appeals)-30, New Delhi [hereinafter referred to as ‘ld. CIT(A)’, in short] in Appeal No. 10496/2019-20 dated 24.02.2023 against the order of assessment passed u/s 153A of the Income-tax Act, 1961 (hereinafter referred to as ‘the Act’) dated 30.12.2019 by the Assessing Officer, DCIT, Central Circle-31, New Delhi (hereinafter referred to as ‘ld. AO’). 2. At the outset, we find that the assessee has raised an additional ground on 06.10.2025 challenging the validity of search assessment proceedings per se due to consolidated approval granted by the ld Addl. CIT u/s 153D of the Act. Since, this goes to the root of the matter and facts relevant for its adjudication are on record, we deem it fit to admit the said additional ground and take up the same first for adjudication. Printed from counselvise.com ITA No. 1197/Del/2023 Realtime Marketing Pvt. Ltd Page | 2 3. We have heard the rival submissions and perused the materials available on record. The original return of income for AY 2017-18 was filed on 27.10.2017 declaring total income of Rs. 11,720/- which stood revised on 25.01.2018 declaring total income of Rs. 1,91,570/-. The revised return was duly processed u/s 143(1) of the Act and thereafter a search action u/s 132 of the Act was conducted on 20.04.2017 at the business premises of the assessee. Notice u/s 153A of the Act stood issued to the assessee on 22.11.2018 for the year under consideration. In response to the same, the assessee filed electronic return on 05.03.2019 declaring total income of Rs. 1,91,570/-. The search assessment was completed u/s 153A of the Act on 30.12.2019 determining the total income of Rs. 29,30,07,595/- after making addition on account of share application money and share premium treating it as accommodation entry and adding the consequential commission expenditure thereon. In the last page of the assessment order, the ld AO had stated that the said search assessment have been passed after obtaining the prior approval of the Addl. CIT, Central Range-8, New Delhi dated 30.12.2019 u/s 153D of the Act. It is this approval which is sought to be challenged by the assessee before us by stating that the said approval is not in consonance with the provisions of Section 153D of the Act. In support of this argument, the ld AR placed on record the copy of approval granted u/s 153D of the Act dated 30.12.2019 which is reproduced as under:- Printed from counselvise.com ITA No. 1197/Del/2023 Realtime Marketing Pvt. Ltd Page | 3 4. From the above, it could be seen that the consolidated approval has been granted by the ld Addl. CIT for various Assessment years which is not in consonance with the provisions of Section 153D of the Act. The provisions of Section 153D of the Act mandate that approval to be given for each assessment year separately and since, the consolidated approval has been granted by the ld Addl. CIT, the entire search assessment gets vitiated and it had to be construed that the approval has been granted by the ld Addl. CIT in a mechanical manner. Reliance in this regard is placed on the decision of the Third Member of Delhi Tribunal in the case of Dheeraj Chaudhary Vs. ACIT in Printed from counselvise.com ITA No. 1197/Del/2023 Realtime Marketing Pvt. Ltd Page | 4 ITA Nos. 6158 to 6160/Del/2018 and ITA Nos. 6214 to 6216/Del/2018 for AYs 2009-10 to 2014-15 dated 12.09.2025 wherein the entire decisions of various Hon'ble High Courts and the principles enunciated therein in the context of approval proceedings u/s 153D of the Act had been duly considered. For the sake of brevity, the said elaborate order is not reproduced herein. 5. Hence, respectfully following the decision of the Hon’ble Third Member of the Delhi Tribunal (supra), we quash the entire search assessment proceedings for want of valid approval u/s 153D of the Act. Accordingly, the additional ground raised in the letter dated 06.10.2023 is hereby allowed. 6. Since, the entire assessment is quashed, the adjudication of other grounds raised by the assessee both on law as well as on facts become academic in nature and they are left open. 7. In the result, the appeal of the assessee is allowed. Order pronounced in the open court on 20/02/2026. -Sd/- -Sd/- (C. N. PRASAD) (M. BALAGANESH) JUDICIAL MEMBER ACCOUNTANT MEMBER Dated: 20/02/2026 A K Keot Copy forwarded to 1. Applicant 2. Respondent 3. CIT 4. CIT (A) 5. DR:ITAT ASSISTANT REGISTRAR ITAT, New Delhi Printed from counselvise.com "