Section 153D of the Income-tax Act: Prior Approval for Search Assessments
Section 153D required specified search-related assessment and reassessment orders made by an Assessing Officer below the rank of Joint Commissioner to receive the Joint Commissioner's prior approval. Although the older search-assessment framework has been superseded for later searches, the provision remains relevant to proceedings governed by the Income-tax Act, 1961.
What is Section 153D?
Section 153D was a supervisory safeguard in the search-assessment procedure. It restricted an Assessing Officer below the rank of Joint Commissioner from passing specified assessment or reassessment orders without obtaining approval from that senior authority beforehand. The purpose was to provide an additional level of scrutiny before finalisation of such orders.
Search generally refers to action under section 132; requisition refers to obtaining specified books, documents or assets under section 132A. An assessment determines taxable income and tax liability, while a reassessment revisits income in accordance with the applicable statutory procedure.
Text and explanation of Section 153D
The substantive rule of section 153D, as reflected in the official text of the Income-tax Act, 1961, is that no assessment or reassessment order may be passed by an Assessing Officer below the rank of Joint Commissioner for the assessment years identified in section 153A(1)(b) or section 153B(1)(b), except with the prior approval of the Joint Commissioner.
The proviso excludes cases where the relevant order is required to be passed with the prior approval of the Principal Commissioner or Commissioner under section 144BA(12). This is a specific statutory exception, not a general waiver of supervisory approval.
Read the official text of section 153D on the Income Tax Department website.
When was prior approval required?
- Nature of order: The order had to be an assessment or reassessment falling within the specified legacy search-assessment provisions.
- Rank of officer: The Assessing Officer passing the order had to be below the rank of Joint Commissioner.
- Timing: Approval had to precede the passing of the assessment or reassessment order.
- Approving authority: The statute identified the Joint Commissioner, subject to its express proviso.
Exception under section 144BA(12)
Where an order was required to be passed with the prior approval of the Principal Commissioner or Commissioner under section 144BA(12), the proviso to section 153D stated that section 153D would not apply. Section 144BA concerned the procedure for invoking the General Anti-Avoidance Rule (GAAR).
Applicability after changes to search-assessment law
Searches before 1 April 2021
Sections 153A, 153B and 153C governed specified historical search and requisition assessments, with section 153D supplying the approval requirement. Whether section 153D applies in an individual dispute depends on the date of search or requisition, the applicable assessment provisions and the governing transitional rules.
Searches from 1 April 2021
The section 153A to 153D mechanism ceased to apply to searches initiated or requisitions made on or after 1 April 2021. For the intervening period, search-related cases were addressed through the applicable reassessment framework, subject to its statutory conditions.
Searches from 1 September 2024
Chapter XIV-B reintroduced a block-assessment framework for searches or requisitions on or after 1 September 2024. Under section 158BG of the 1961 Act, the block assessment was subject to a distinct prior-approval requirement; it should not be confused with section 153D. The Income Tax Department's ITR-B guidance explains the block-return process.
Effect of the Income-tax Act, 2025
The Income-tax Act, 2025 came into force on 1 April 2026 and did not carry forward section 153D as a corresponding provision. Importantly, section 536(2)(v) saves proceedings connected with searches initiated or requisitions made before commencement of the 2025 Act, so that the 1961 Act continues to apply as provided by the savings clause. The fact that an assessment order is passed after 1 April 2026 does not, by itself, displace the saved statutory regime.
See the Income-tax Act, 2025 and the department's 2025 Act and transition resources.
Practical significance of Section 153D approval
For an assessment governed by section 153D, the assessment record should establish that the competent authority granted approval before the order was passed. A dispute about absent, belated or legally defective approval may affect the validity of the assessment, but the result depends on the facts, the record and applicable judicial precedent. The statutory approval requirement should not be treated as a mere formality.
When reviewing an older search assessment, identify the date of search or requisition, relevant assessment years, rank of the Assessing Officer, date and authority of approval, and the assessment order's date. Also check limitation under the applicable version of section 153B and whether the proviso to section 153D is engaged.
Legislative history and official references
- Finance Act, 2007: Section 153D was inserted with effect from 1 June 2007.
- Finance Act, 2008: The reference to section 153A(1) was amended retrospectively with effect from 1 June 2007.
- Finance Act, 2013: The proviso relating to section 144BA(12) was introduced with effect from 1 April 2016.
- Finance (No. 2) Act, 2014: The reference to Principal Commissioner or Commissioner was updated.
Official references: Section 153D, Income-tax Act, 1961; Income-tax Act, 1961 as amended by Finance Act, 2025; Income Tax Department assessment guidance; and Income-tax Act, 2025, section 536.
Updated: 26 October 2026. This article explains the statutory framework for general information; the relevant law and facts should be verified for any particular proceeding.