PCIT Central 2 Vs S.S. Con Build Pvt. Ltd. (Supreme Court)
Summary: Supreme Court dismissed the Revenue’s Special Leave Petitions in the case of PCIT Central 2 Vs S.S. Con Build Pvt. Ltd., holding that the issue involved was squarely covered against the Revenue by its decision in PCIT Vs Abhisar Buildwell P. Ltd.. The underlying dispute arose from the Delhi High Court’s dismissal of the Revenue’s appeal concerning AY 2006-07, where an addition of Rs. 7 crore under Section 68 had been deleted because it was not based on incriminating material found during search. The Delhi High Court had held that the matter was covered by CIT Vs Kabul Chawla, under which completed assessments cannot be interfered with under Section 153A in the absence of incriminating material unearthed during search. It also rejected the Revenue’s contention that the jurisdictional objection could not be raised after an earlier remand, observing that a jurisdictional issue goes to the root of the matter and may be raised even at a belated stage, including in appeal. The Supreme Court subsequently noted that the controversy stood squarely concluded by Abhisar Buildwell and dismissed the Revenue’s SLPs along with the pending applications.
Read Delhi HC Judgment in this case: Section 153A Addition Without Seized Material Invalid: Delhi HC
Cases Discussed
- PCIT Vs Abhisar Buildwell P. Ltd., Civil Appeal No. 6580/2021, dated 24.04.2023 (Supreme Court) — Followed. Supreme Court held that no addition can be made in completed/unabated assessments under Section 153A in the absence of incriminating material found during search.
- CIT Vs Kabul Chawla, [2016] 380 ITR 573 (Delhi High Court) — Relied upon by the Delhi High Court. Completed assessments can be interfered with under Section 153A only on the basis of incriminating material unearthed during search. The principle was subsequently approved by the Supreme Court in Abhisar Buildwell.
- Kanwar Singh Saini Vs High Court of Delhi, (2012) 4 SCC 307 (Supreme Court) — Cited for the proposition that an issue of jurisdiction goes to the root of the cause and can be raised even at a belated stage.
- M/s Mavany Brothers Vs CIT, 2015 SCC OnLine Bom 1686 (Bombay High Court) — Cited on the principle that a jurisdictional issue can be raised at a belated stage, including in appeal.
FULL TEXT OF THE SUPREME COURT JUDGMENT/ORDER
The issue involved in the present petitions is squarely covered against the Revenue in view of the decision of this Court in the case of Principal Commissioner of Income Tax, Central -3 Vs. Abhisar Buildwell P. Ltd. passed in Civil Appeal No. 6580/2021 on 24.04.2023.
The present Special Leave Petitions stand dismissed.
Pending applications shall stand disposed of.
