This case involves the Deputy Commissioner of Income Tax, Central Circle-8, New Delhi (appellant) and Amolak Singh Bhatia from Bilaspur (respondent), regarding the assessment year 2003-04. The case was filed on 2021-06-16, and the Final Tribunal Order was pronounced on 2023-04-18.
The Income Tax Appellate Tribunal (Delhi Bench ‘A’) presided over this case with Shri Shamim Yahya, Accountant Member, and Ms. Astha Chandra, Judicial Member. The case details include:
The Revenue’s appeals were based on the deletion of additions by the CIT (Appeals) due to the absence of incriminating material found during the search and also on the merits of the case. The respondent, Amolak Singh Bhatia, filed cross objections supporting the CIT(A)’s order and raised new grounds challenging the validity of the approval granted by the Joint Commissioner of Income Tax under section 153D of the Income Tax Act.
The respondent’s counsel argued that the JCIT’s approval was devoid of application of mind and did not consider the material on record. The approval was granted within 24 hours for multiple cases, which indicated a mechanical exercise. The respondent’s counsel cited several judicial precedents to support the argument that such approvals should demonstrate independent application of mind.
The Tribunal carefully examined the contentions and the relevant legal provisions. They observed that the JCIT’s approval did not explicitly state that the seized material was reviewed, and the approval appeared to be granted based on assumptions. The Tribunal referred to similar cases where mechanical approval without proper scrutiny was deemed invalid.
The Tribunal concluded that the approval granted by the JCIT in this case was mechanical and without proper application of mind. As a result, the assessment orders for the assessment years 2003-04 to 2007-08 were declared invalid. The cross objections filed by the respondent were allowed, and the Revenue’s appeals were dismissed as infructuous.
The assessment orders passed under section 153A read with section 143(3) of the Income Tax Act for the assessment years 2003-04 to 2007-08 were quashed. The Tribunal emphasized the necessity for approvals under section 153D to reflect independent application of mind and due consideration of the material on record.
This case underscores the importance of thorough scrutiny and independent judgment by supervisory authorities in tax assessments, ensuring that the legal and factual bases of such approvals are sound and justifiable.
Order pronounced in the open court on this 18th day of April, 2023.
Members:
Shri Shamim Yahya, Accountant Member
Ms. Astha Chandra, Judicial Member
Case Details:
ITA Nos.717/Del./2021 (Assessment Year: 2004-05)
ITA Nos.718/Del./2021 (Assessment Year: 2005-06)
ITA Nos.719/Del./2021 (Assessment Year: 2006-07)
ITA Nos.720/Del./2021 (Assessment Year: 2007-08)
ITA Nos.721/Del./2021 (Assessment Year: 2003-04)
DCIT, Central Circle 8, New Delhi vs. Amolak Singh Bhatia, Bilaspur
(PAN: AIZPB9572H)
DCIT Central Circle-8 vs. Amolak Singh Bhatia: Case No. ITA 721/DEL/2021
Manage the increasing number of hearings effortlessly by leveraging the legal AI revolution We are India's Leading revolutionary AI-powered legal platform where you can get enough insights into top cases and judgements.
Research Platform