PCIT (Central) Vs Keti Construction Ltd. (Madhya Pradesh High Court)
The Madhya Pradesh High Court considered an appeal filed by the Principal Commissioner of Income Tax (Central) under Section 260A of the Income-tax Act, 1961 against the order dated 19.12.2023 passed by the Income Tax Appellate Tribunal (ITAT), Indore Bench in IT(SS)A No. 5/Ind/2023 for Assessment Year (AY) 2010-11. The Revenue challenged the ITAT’s order remanding the matter to the Commissioner of Income Tax (Appeals) [CIT(A)] for adjudication on merits after holding that non-payment of tax due on the returned income was a defect in the appeal and not one rendering the appeal void.
Material Facts and Procedural Background
The respondent-assessee was engaged in the business of construction of toll roads on a BOT basis. A search and seizure operation under Section 132 of the Act was conducted on 05.05.2011 at its business and residential premises. Pursuant to notices issued under Section 153A, the assessee filed returns for various assessment years, including AY 2010-11, declaring additional income consequent to the search. For AY 2010-11, the income declared under Section 153A was ₹9,28,62,960 as against ₹1,15,98,650 declared in the original return, resulting in additional income of ₹8,12,64,310. During the search, the assessee also disclosed additional income of ₹35 crore.
