MADHAVA REDDY BADDEVOLU,HYDERABAD vs. DCIT., CENTRAL CIRCLE-1(2), HYDERABAD

Facts

The assessee challenged additions made by the AO and confirmed by the CIT(A) regarding unexplained investment and income under sections 69, 69A, and 115BBE of the IT Act. A key ground of appeal was the alleged mechanical approval granted by the Additional CIT/JCIT under section 148B for the assessment order, rendering it invalid.

Held

The Tribunal held that the approval granted under section 148B was mechanical and lacked application of mind, as evidenced by the cursory nature of the approval order and the short time frame between the draft order submission and approval. Therefore, the assessment order was vitiated and liable to be quashed.

Key Issues

Whether the assessment order passed under section 143(3) is invalid due to a mechanical and non-application of mind approval granted by the Additional CIT/JCIT under section 148B.