Expressway Services Pvt. Ltd. Vs DCIT (ITAT Hyderabad)
The Income Tax Appellate Tribunal (ITAT), Hyderabad, disposed of three appeals relating to Assessment Years (AYs) 2018-19 to 2020-21 arising from assessments made under Section 153C of the Income-tax Act following a search conducted under Section 132 in the case of Prathima Infrastructure Pvt. Ltd. and its associated entities, including the assessee. The Assessing Officer (AO) issued notices under Section 153C and made additions by estimating 1% commission income on sub-contract receipts and by treating alleged cash received from sub-contractors as the assessee’s income. The Commissioner of Income Tax (Appeals) [CIT(A)] deleted the estimated commission addition but confirmed the addition relating to alleged cash receipts from sub-contractors.
The Tribunal first examined whether the assessments were barred by limitation under Section 153B. The assessee contended that the search in the case of the searched person concluded on 12.02.2020, and after applying the extension granted under the Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020 (TOLA), the assessments ought to have been completed by 30.09.2021. Since the assessments were passed on 28.03.2022, they were argued to be time-barred. The Revenue contended that limitation should be reckoned from 23.07.2020, when the search concluded in respect of another person covered by the joint warrant following revocation of a restraint order.
