SH. GULZAR AHMED,NEW DELHI V. DCIT, DEHRADUN

ITA 2560/DEL/2017

AI Insights

Gulzar Ahmed appealed against the order passed by the Commissioner of Income Tax (Appeals)-IV, Kanpur, which was based on an assessment order by the DCIT, Central Circle, Dehradun. The primary contention in the appeal was the invalidity of the approval under section 153D of the Income Tax Act, 1961, which was crucial for the jurisdiction and validity of the assessment. The tribunal referenced similar cases, particularly the case of Uttarkhand Uthan Samiti v. ITO, where it was held that the approvals in question were not valid as they were granted without proper consideration of the assessment records and incriminating materials.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 30479 (ITAT-DEHRADUN)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-02-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2011-2012
• Other Referred Cases: Uttarkhand Uthan Samiti v. ITO, PCIT v. Shiv Kumar Nayyar
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Assessment record; Competent authority
• Section: 143(3); 48; 153A; 153C

Judgement Text

"1 ITA no. 2560/DEL/2017 IN THE INCOME TAX APPELLATE TRIBUNAL DEHRADUN BENCH BEFORE SHRI ANUBHAV SHARMA, JUDICIAL MEMBER AND SHRI MANISH AGARWAL, ACCOUNTANT MEMBER ITA No. 2560/DEL/2017 Asstt. Yr: 2011-12 Gulzar Ahmed, Village Bhuddi, P.O. Kabari Grant, Distt. Dehradun. PAN- AFGPA 7405 Q Vs DCIT, Central Circle, Dehradun. APPELLANT RESPONDENT Assessee represented by Dr. Rakesh Gupta, Adv.; & Shri Somil Aggarwal, Adv. Department represented by Sh. S.K. Chatterjee, CIT(DR) Date of hearing 14.02.2025 Date of pronouncement 19.02.2025 O R D E R PER ANUBHAV SHARMA, JM: The assessee has come in appeal against the order dated 28.02.2017 passed by the Commissioner of Income Tax (Appeals)-IV, Kanpur (hereinafter referred as Ld. First Appellate Authority or in short ‘FAA’) in Appeal No. CIT(A)- IV/60/DCIT-CC/DDN/2015-16/284, for the assessment year 2011-12 against the assessment order dated 30.03.2015 passed u/s 153C read with section 143(3) of the 2 ITA no. 2560/DEL/2017 Income Tax Act, 1961 (hereinafter referred as ‘the Act’) by the DCIT, Central Circle, Dehradun (hereinafter referred as the AO). 2. Learned AR has pointed out about application for admission of additional grounds of appeal which includes a ground wherein the impugned assessment order has been challenged on the basis of invalid approval u/s 153D of the Act. As the ground goes to the root of assumption of jurisdiction, the same is admitted. 3. We find that in ITA nos. 48 to 52/DDN/2019 and ITA no. 130/DDN/2019 in the case of Uttarkhand Uthan Samiti v. ITO, coordinate Bench has taken into consideration the approval which was granted by the Competent Authority on 30.03.2015 and has held that this approval which is granted in the case of 16 assessees for assessment u/s 153A and 5 assessees in case of assessment u/s 153C, was not a valid assessment and there was violation of the mandatory provisions of section 153D of the Act which require the approval to be issued after application of mind to the assessment record and incriminating materials. We find that the case of the assessee is squarely covered on facts with the case relied by the learned DR in the case of Uttarkhand Uthan Samiti v. ITO (supra). Further, it is now a settled provision of law that exercise of powers u/s 153D have to pass the scrutiny that the same were not exercised mechanically. Reliance in this regard can be placed on the judgment of Hon’ble Delhi High Court in the case of PCIT v. Shiv Kumar Nayyar [ITA 285/2024 & CM APPL 28994/2024 – order dated 15.05.2024]. The copy of 3 ITA no. 2560/DEL/2017 approval as reproduced in case of Uttarkhand Uthan Samiti (supra) shows for multiple years and multiple assessees the approval is granted. There is no reference of any material considered or even if assessment records were examined. 4. In the light of aforesaid additional ground is sustained. The appeal of the assessee is allowed and the impugned assessment order is quashed. Order pronounced in open court on 19.02.2025. Sd/- Sd/- (MANISH AGARWAL) (ANUBHAV SHARMA) ACCOUNTANT MEMBER JUDICIAL MEMBER *MP* Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT ASSISTANT REGISTRAR ITAT, NEW DELHI "