Shyama Shyam Infradevelopers Pvt Ltd Vs ITO (ITAT Agra)
The appeal before the Income Tax Appellate Tribunal, Agra Bench related to Assessment Year (AY) 2016–17 and arose from a reassessment order passed under section 147 read with section 144B of the Income-tax Act, 1961. The reassessment order dated 18.05.2023 had been confirmed by the National Faceless Appeal Centre on 12.09.2025.
The primary issues for consideration were whether the Assessing Officer (AO) had validly assumed jurisdiction under section 147 and whether the Commissioner (Appeals) was justified in confirming an ad hoc disallowance of expenditure.
The assessee, engaged in the business of construction, had filed its original return of income for AY 2016–17 on 17.09.2016 declaring income of ₹3,48,150. The case was reopened based on information available on the Insight Portal alleging that the assessee had sold immovable property for ₹6,21,43,000 during the year, whereas only ₹3,86,89,960 had been shown as gross receipts. Based on this information, a notice under section 148 was issued on 30.07.2022. In response, the assessee filed a return on 23.08.2022 declaring the same income as originally returned.
During the reassessment proceedings, the assessee furnished extensive documentation, including income-tax returns, computation of income, sale deeds, audited financial statements, construction agreements, income details of landowners, audit reports for AYs 2015–16 and 2016–17, and bills and vouchers relating to expenditure. The assessee also submitted comparative gross profit and net profit ratios for FYs 2013–14, 2014–15 and 2015–16, stating that there was no abnormal variation in financial performance, and objected to any proposal to reject its books of account.
