EXEL RUBBER PRIVATE LIMITED,HYDERABAD vs. DCIT., CENTRAL CIRCLE-1(2), HYDERABAD

ITA 1571/HYD/2025Status: DisposedITAT Hyderabad18 February 2026AY 2021-2229 pages
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What did the Tribunal hold?

The Tribunal held that the Assessing Officer's invocation of Section 148 was invalid as it did not follow the prescribed procedure and lacked proper authorization. Consequently, the assessment proceedings were deemed void ab initio.

What were the facts?

During a search operation, unaccounted income and expenditures were discovered through software on a seized laptop. The assessee's MD admitted to undisclosed income, but the Assessing Officer made an addition based on adjusted purchase transactions.

What were the issues?

Whether the assessment proceedings initiated under Section 148 were valid given the AO's failure to comply with the prescribed conditions and obtain necessary approvals. Whether the addition made by the AO was justified based on the seized material and admissions.

Which sections of the Income-tax Act were involved?

Section 148,Section 147,Section 132,Section 65B

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Cases cited in this judgment(3)Show list

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Income Tax Appellate Tribunal, Hyderabad B‘Bench, Hyderabad

Before: Shri Vijay Pal Rao, Vice- & Shri Manjunatha G.

For Appellant: Shri M.V. Prasad, CA, Dr. Narendra Kumar Naik, CIT (DR)
For Respondent: Dr. Narendra Kumar Naik, CIT (DR)
Hearing: 20/01/2026

These two appeals filed by the assessee are directed against the separate orders passed by the Learned Commissioner of Income Tax (Appeals)-11, Hyderabad, both dated 14/07/2025 for the A.Ys 2020-21, 2021-22 and 2022-23 respectively. Since common issues are involved in these two appeals, for the sake of convenience, these were heard together and are being disposed of by this common consolidated order. ITA No.1566/Hyd/2025 A.Y 2020-21

The order continues below.

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