Case Law Details
PCIT Vs Oxygen Business Park Pvt Ltd (Delhi High Court)
Introduction: The Delhi High Court’s recent judgment in the case of PCIT vs Oxygen Business Park Pvt Ltd sheds light on the intricacies of Section 153A proceedings under the Income Tax Act. The court’s decision revolves around the absence of incriminating material during a search and its implications on the reopening of assessments.
Detailed Analysis: The appellant, the revenue authority, contested the dismissal of its appeal by the Income Tax Appellate Tribunal concerning the Assessment Year 2011-12. The core questions included the scope of assessment under Section 153A and the applicability of legal precedents, specifically CIT vs Kabul Chawla and Dr. A.V. Sreekumar vs CIT.
Following a preliminary hearing, the appellant chose to focus solely on whether fresh material post-search could justify reopening assessments under Section 153A. The case centered on the respondent’s engagement in developing a Special Economic Zone (SEZ) for IT services, subsequent search actions, and the disputed disallowance of a deduction claimed under Section 80IAB.
The crucial argument from the appellant was based on a post-search statement by the valuer, Shri B.P. Singh, forming the basis for disallowance. Citing Dr. A.V. Sreekumar, the appellant contended that such post-search statements could initiate Section 153A proceedings.
Please become a Premium member. If you are already a Premium member, login here to access the full content.
