Tribunal annuls assessment order for invalid approval under Section 153D, partially allowing appellant's appeal.

The Tribunal annulled the assessment order due to the invalid approval under Section 153D, following a precedent case. Consequently, the other grounds raised by the appellant were not individually addressed, leading to a partial allowance of the appeal.

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Issues Involved:
1. Validity of the assessment framed based on invalid and unlawful approval under Section 153D.
2. Addition of Rs. 11,12,600/- without rejecting the books of account.
3. Alleged commission of Rs. 9,00,000/- being part of Rs. 11,12,600/- found from the possession of the appellant.
4. Addition made without corroborative material or evidence.
5. Addition made without rejection of books of account.

Issue-wise Detailed Analysis:

1. Validity of the assessment framed based on invalid and unlawful approval under Section 153D:
The appellant argued that the assessment order was void-ab-initio as it was based on invalid approval under Section 153D by the Additional CIT, Central Kanpur. The approval was alleged to be mechanical and without application of mind, as it was granted collectively for 72 cases on the same day, including the appellant's case. The Tribunal noted that the assessment and approval were both completed on 30.12.2018, and the approval was indeed given mechanically without proper examination of the voluminous documents. The Tribunal referenced a similar case (Shri Naresh Kumar Jain vs. DCIT) where the approval was found to be mechanical and invalid, leading to the annulment of the assessment order. Consequently, the Tribunal annulled the assessment order in the present case as well.

2. Addition of Rs. 11,12,600/- without rejecting the books of account:
The appellant contended that the addition of Rs. 11,12,600/- was confirmed without rejecting the books of account, despite explanations provided during the assessment and appellate proceedings. The Tribunal did not specifically address this issue separately, as the primary ground regarding the invalid approval under Section 153D was sufficient to annul the assessment order.

3. Alleged commission of Rs. 9,00,000/- being part of Rs. 11,12,600/- found from the possession of the appellant:
The appellant argued that the alleged commission of Rs. 9,00,000/- was not earned by them and the amount of Rs. 11,12,600/- found was not unexplained. The Tribunal did not delve into this issue separately due to the annulment of the assessment order based on the invalid approval under Section 153D.

4. Addition made without corroborative material or evidence:
The appellant claimed that the addition was made without any corroborative material or evidence, especially given that the assessment was completed following a search and seizure operation. The Tribunal did not address this issue separately, as the annulment of the assessment order based on the primary ground rendered further adjudication unnecessary.

5. Addition made without rejection of books of account:
The appellant argued that the addition was unwarranted and unlawful as it was made without rejecting the books of account. Similar to the other issues, the Tribunal did not specifically address this point due to the primary ground leading to the annulment of the assessment order.

Conclusion:
The Tribunal annulled the assessment order based on the invalid and mechanical approval under Section 153D, following the precedent set in the case of Shri Naresh Kumar Jain vs. DCIT. As a result, the other grounds of appeal were not separately adjudicated. The appeal of the assessee was partly allowed.

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