Aashiyana Civil Contractors P. Ltd. Vs DCIT (ITAT Delhi)
In the case of Aashiyana Civil Contractors P. Ltd. vs. DCIT, the Income Tax Appellate Tribunal (ITAT) Delhi ruled on the addition of Rs. 13.16 lakh as unexplained cash credits for the assessment year 2011-12. The proceedings were initiated following a Section 132 search action conducted on September 30, 2015. The Assessing Officer (AO) invoked Section 68 of the Income-tax Act, 1961, to make the addition, which was subsequently upheld by the Commissioner of Income Tax (Appeals) [CIT(A)]. The ITAT, however, observed that the assessment year in question was “unabated,” as per the legal interpretation established by the Supreme Court in PCIT Vs. Abhisar Buildwell Pvt. Ltd. (2023) 454 ITR 212. This precedent mandates that any addition in such cases must be based on seized or incriminating material.
The ITAT found no evidence of incriminating material supporting the addition during the assessment process. The tribunal emphasized that the absence of such material rendered the addition unsustainable under law. Consequently, the ITAT deleted the Rs. 13.16 lakh addition, concluding that the other arguments on merits had become academic. The decision underscores the necessity for incriminating evidence in unabated assessments following a search operation. The appeal was thus allowed in favor of Aashiyana Civil Contractors P. Ltd.
