Case Law Details
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.
FULL TEXT OF THE ORDER OF ITAT DELHI
This assessee’s appeal for assessment year 2011-12, arises against the Commissioner of Income Tax (Appeals)-IV, [in short, the “CIT(A)”] Kanpur’s DIN and Order No. CIT(A)-IV/ 10643/DCITCC/NOIDA/20 17-18, dated 04.10.2018 involving proceedings under section 153A/ 143(3) of the Income-tax Act, 1961 (hereinafter referred to as ‘the Act’).
2. Case called twice. None appears at the assessee’s behest. It is accordingly proceeded ex-parte.
3. It emerges during the course of hearing with the able assistance coming from learned CIT(DR) representing Revenue that both the lower authorities herein have made section 68 unexplained cash credit addition of Rs. 13.60 lakhs in assessment dated 30.12.2017 as upheld in the CIT(A) lower appellate
4. Faced with this situation, learned CIT(DR) could hardly dispute the clinching fact emerging from the case file that the impugned assessment year 2011-12 is an “unabated” one since the departmental authorities had carried out section 132 search action on 30th September, 2015. And that hon’ble apex court’s recent landmark decision in PCIT Vs. Abhisar Buildwell Pvt. Ltd. (2023) 454 ITR 212 has settled the law that such an addition involving an unabated assessment has to be based on the seized/incriminating material only.
5. We invited the Revenue’s attention to para 5 in assessment discussion, wherein, there is not even an iota of evidence indicating that the learned Assessing Officer has made the addition in assessee’s hands based on such incriminating material. We thus find it a fit instance to delete the impugned section 68 addition of Rs. 13.16 lakhs in very terms. Ordered accordingly.
6. All other pleadings on merits stand rendered academic.
7. This assessee’s appeal is allowed in above terms.
Order pronounced in the open court on 20th November, 2024
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