SYED WARISUDDIN NAVEED,HYDERABAD vs. DCIT, CENTRAL CIRCLE-1(2), HYDERABAD

Facts

The assessee's return for AY 2023-24 was filed after a search operation. During assessment, unexplained cash and investments related to land purchase and development were noted. The assessee offered part of the unexplained amount as income, but the AO made additions under Sections 69A and 69 of the IT Act, and taxed an amount under Section 115BBE.

Held

The Tribunal admitted the assessee's additional ground challenging the validity of the assessment order. It held that the approval granted by the Addl.CIT/JCIT under Section 148B was mechanical and without application of mind, rendering the assessment order invalid, following various High Court and Supreme Court precedents.

Key Issues

Whether the assessment order passed under Section 143(3) is vitiated due to mechanical approval granted by the Addl.CIT/JCIT under Section 148B without application of mind.