ACIT Vs Sandur Bypass Projects Pvt. Ltd. (ITAT Delhi)
Abated Year Escapes Kabul Chawla Shield: 153A Revived- No Incriminating Material Plea Fails in Abated Assessment
In ACIT Vs. Sandur Bypass Projects Pvt. Ltd., ITA No.1974/Del/2017, AY 2011-12, order dated 31.12.2025, Delhi ITAT partly allowed Revenue’s appeal by holding that the year under consideration was an abated assessment year, thereby setting aside CIT(A)’s order which had quashed assessment u/s 153A for want of incriminating material.
Search u/s 132 was conducted on 28.08.2012 in DSC Group, including Assessee. AO completed assessment u/s 153A r.w.s. 143(3) on 30.03.2015, making additions/disallowances aggregating to ₹2.76 crore. CIT(A) quashed assessment relying on Kabul Chawla (Del HC) on ground that no incriminating material pertaining to AY 2011-12 was found during search, and treated other grounds as academic.
Tribunal noted that AY 2011-12 was an abated year, as original return was only processed u/s 143(1) and time for issuing notice u/s 143(2) had not expired on date of search. In case of abated assessments, AO has wide powers u/s 153A and additions are not restricted to incriminating material. Accordingly, ITAT held that CIT(A) erred in quashing assessment on jurisdictional ground, allowed Revenue’s legal ground, and restored entire matter to AO for de novo assessment on merits, since CIT(A) had not adjudicated individual additions. Revenue’s appeal was partly allowed for statistical purposes.
FULL TEXT OF THE ORDER OF ITAT DELHI
