ACE TYRES PRIVATE LIMITED,HYDERABAD vs. DCIT, CENTRAL CIRCLE-1(2), HYDERABAD

Facts

The assessee's case was covered during a search operation. Subsequently, the assessment was completed under Section 143(3), where additions were made for unexplained investments and money, including amounts related to land purchase and development. The assessee challenged these additions, including an additional ground regarding the validity of the assessment order due to mechanical approval under Section 148B.

Held

The Tribunal admitted the additional ground and held that the approval granted by the Addl.CIT/JCIT under Section 148B was mechanical and without proper application of mind, as it was not discernible from the approval order that the authority had examined the draft assessment order and the supporting material. Consequently, the assessment order passed based on this invalid approval was rendered non-est in law.

Key Issues

Whether the assessment order is vitiated due to a mechanical approval granted under Section 148B by the approving authority without application of mind.