SHIV VANI BUILDWELL PRIVATE LIMITED,DELHI V. DCIT,CC-14, JHANDEWALAN

CO 44/DEL/2025

AI Insights

The case involves an appeal by the Deputy Commissioner of Income Tax (DCIT), Central Circle-14, New Delhi against Shiv Vani Buildwell Private Ltd. The appeal was against the order of the Commissioner of Income-tax (Appeals)-26, New Delhi, which had arisen from an earlier assessment order passed under sections 153A read with section 143(3) of the Income Tax Act, 1961 by the Assistant Commissioner of Income Tax (ACIT), Central Circle-14, New Delhi. The primary legal issue was the validity of the approval under section 153D, which is required for the assessment proceedings under section 153A. The Tribunal admitted an additional ground raised by the assessee regarding the lack of proper approval under section 153D and found that the approval was not validly granted as it did not involve an independent application of mind nor perusal of the draft assessment orders.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 398395 (ITAT-DELHI)
• Appeal Type: Cross Objection
• Pronouncement Date: 06-06-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: G
• Assessment Year: 2017-2018
• Other Referred Cases: Prateek Nagpal vs. ACIT, Anu Nagpal vs. ACIT
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: MAHESH KUMAR
• Assessee Lawyers: YUDHISTER MEHTANI
• Section: 143(3); 153A

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCHES: G : NEW DELHI BEFORE SHRI ANUBHAV SHARMA, JUDICIAL MEMBER AND SHRI MANISH AGARWAL, ACCOUNTANT MEMBER ITA No.5040/Del/2024 Assessment Year: 2017-18 DCIT, Central Circle-14, New Delhi. Vs Shiv Vani Buildwell Private Ltd., Delhi PAN: AAPCS0835B CO No.44/Del/2025 (ITA No.5040/Del/2024) Assessment Year: 2017-18 Shiv Vani Buildwell Private Ltd., 151-A, Club Road, Sainik Farm, New Delhi – 110 062. PAN: AAPCS0835B DCIT, Central Circle-14, New Delhi (Appellant) (Respondent) Assessee by : Shri Yudhister Mehtani, CA Revenue by : Shri Mahesh Kumar, CIT-DR Date of Hearing : 02.06.2025 Date of Pronouncement : 06.06.2025 ORDER PER ANUBHAV SHARMA, JM: This appeal is preferred by the Revenue against the order dated 12.08.2024 of the Commissioner of Income-tax (Appeals)-26, New Delhi (hereinafter referred to as the Ld. First Appellate Authority or ‘the Ld. FAA’, ITA No.5040/Del/2024 CO No.44/Del/2025 2 for short) in Appeal No.10335/2019-20 arising out of the appeal before it against the order dated 31.12.2019 passed u/s 153A r.w.s. 143(3) of the Income Tax Act, 1961 (hereinafter referred as ‘the Act’) by the ACIT, Central Circle- 14, New Delhi (hereinafter referred to as the Ld. AO). The assessee has filed Cross Objections. 2. Heard and perused the records. Assessee raises an additional ground which is reproduced below; “1. That having regard to the facts and circumstances of the case, Ld. C1T(A) ought to have quashed the impugned assessment order passed by Ld.AO u/s 153A without obtaining approval under section 153D in accordance with law and without complying with the mandatory conditions laid down under that section.” 3. As the additional ground raised is purely legal and can be decided on the basis of admitted facts on record, the same is admitted. 4. We find the aforesaid legal issue is fully covered by the Coordinate Bench, common order dated 10.01.2025 passed in name of other persons case which were centralized and for which a common approval was given u/s 153 D of the Act. The ld. DR defends the approval on similar basis. 5. Before deciding the legal issue in dispute, we may gainfully reproduce the approval u/s. 153D of the Income Tax Act (for short ‘the Act’), which read as under:- ITA No.5040/Del/2024 CO No.44/Del/2025 3 ITA No.5040/Del/2024 CO No.44/Del/2025 4 6. It can be observed that in Prateek Nagpal vs. ACIT decided vide ITA No. 466/Del/2022 (AY 2012-13), ITA No.521/Del/2022 (AY 2013-14) & ITA no. 522/Del/2022 (AY 2014-15) and Anu Nagpal V. ACIT ITA No.3843/DEL/2024 ITA No.5040/Del/2024 CO No.44/Del/2025 5 order dated 16.04.2025 on similar facts and circumstances of the case as well common approval u/s 153D of the Income Tax Act dated 30.12.2019, the co- ordinate bench has quashed the entire proceedings initiated under section 153C r.w.s. 153A of the Act in the absence of a valid approval granted by the ACIT, Central Range-4, New Delhi. 7. The copy of approval u/s. 153D of the Act dated 30.12.2019 granted in total 28 assessees cases wherein, the present assessee’s name is mentioned at serial no. 10 and also perused the Tribunal’s order dated 10.1.2025 passed in the case of Prateek Nagpal’s case whose name also stands mentioned at serial no. 3 and of Anu Nagpal whose name is mentioned at Sr. 1&2 of the said approval u/s. 153D of the Act. In view of the aforesaid factual matrix, we find considerable cogency in the contention of the Ld. AR that exactly on similar facts and circumstances of the case, the Coordinate Bench vide its common order dated 10.01.2025 passed in another case viz. Prateek Nagpal (supra) similar legal issue was decided in favour of the assessee by quashing the entire proceedings initiated under section 153C r.w.s. 153A of the Act in the absence of a valid approval granted by the ACIT, Central Range-4, New Delhi. 8. Notably, the order of approval dated 30.12.2020 reproduced establishes that a single approval has been granted for various assessment years and various assessee. The said order also fails to make any mention of the fact that the draft ITA No.5040/Del/2024 CO No.44/Del/2025 6 assessment orders were perused at all, much less perusal of the same with an independent application of mind. 9. We accordingly sustain the additional ground raised in the CO and allow the same. The impugned assessment is quashed. The appeal of Revenue is dismissed. Order pronounced in the open court on 06.06.2025. Sd/- Sd/- (MANISH AGARWAL) (ANUBHAV SHARMA) ACCOUNTANT MEMBER JUDICIAL MEMBER Dated: 06th June, 2025. dk Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(A) 5. DR Asstt. Registrar, ITAT, New Delhi "