Delhi HC: Consolidated approval under Section 153D of Income-tax Act is invalid; approval required for each AY

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Published 24 October 2026

Case: Pr. Commissioner Of Income Tax -10 vs Atul Kumar Bansal
Court: High Court of Delhi
Decided: 9 October 2026
Statutes: Income-tax Act, 1961 — s.260A, s.153A, s.143(3), s.153D
Source: Indian Kanoon (Delhi HC)

Bottom Line Up Front (BLUF)

In Pr. Commissioner Of Income Tax -10 vs Atul Kumar Bansal, the Delhi High Court on 2026-10-09 upheld the ITAT's decision that approval under Section 153D of the Income-tax Act, 1961 must be given for each assessment year for each assessee, not as a consolidated approval. The court dismissed the Revenue's appeal, quashing assessments framed under Section 153A read with Section 143(3) of the Act.

Ratio Decidendi · Legal Principle Established

Approval under Section 153D of the Income-tax Act, 1961 must be granted specifically for each assessment year for each assessee, and a consolidated approval covering multiple assessment years is not in consonance with the statutory provisions.

Practice & Procedural Impact for Advocates

Advocates should ensure that approvals under Section 153D are obtained distinctly for each assessment year. Litigants can challenge assessments where consolidated approvals were granted under Section 153D, arguing non-compliance with statutory mandates.

Key Legal Takeaways

1Section 153D requires year-specific approval.
2Consolidated approval for multiple AYs is invalid.
3Assessments based on invalid 153D approval can be quashed.

The Legal Issue The Revenue preferred appeals under Section 260A of the Income-tax Act, 1961, challenging a common order of the Income Tax Appellate Tribunal (ITAT). The core issue was the validity of assessments framed under Section 153A read with Section 143(3) of the Act, specifically concerning the approval granted under Section 153D of the Act. The ITAT had quashed these assessments, holding that the Additional Commissioner of Income-Tax had accorded a consolidated approval for Assessment Years (AYs) 2007-08 to 2013-14, which it deemed not in consonance with Section 153D.

Court's Reasoning The Delhi High Court, in its judgment dated 2026-10-09, upheld the ITAT's reasoning. The court agreed that a plain reading of Section 153D of the Income-tax Act, 1961, mandates that approval must be given for each assessment year for each assessee. The court found that the consolidated approval provided by the Additional Commissioner of Income-Tax for multiple assessment years (AYs 2007-08 to 2013-14) was not in accordance with the statutory requirement. Consequently, the assessments framed based on such an invalid approval were correctly quashed by the ITAT.

What Follows The Delhi High Court dismissed the appeals preferred by the Revenue. This means the ITAT's order, which quashed the assessments framed under Section 153A read with Section 143(3) of the Income-tax Act, 1961, due to the invalid consolidated approval under Section 153D, stands affirmed. The Revenue's challenge to the ITAT's decision was unsuccessful.