PCIT Vs RPS Infra Projects Pvt. Ltd. (Bombay High Court)
Whether the additions be made under Section 153A for unabated years without incriminating material, and can the Tribunal ignore binding precedent because it is under challenge?
The respondent Assessee is a undertaking government construction projects. It filed return for AY 2014-2015. A search was conducted on the group companies; on the basis of which addition was sought to be made disallowing bogus purchases. The AO made assessment for AY 2015-2016; 16-17; 17-18; 18-19. On appeal; CIT(A) allowed the appeal of the Assessee. It held that those years fall under “unabated assessments” as there was no incriminating evidence found for those years to make addition. Therefore; provisions of section 153A of the Income Tax are not attached. It followed the ruling of the Jurisdictional High Court. Being aggrieved; Revenue filed appeal before ITAT, Mumbai. ITAT dismissed the appeal filed by the department on the ground that merely because SLP has been filed before Supreme Court cannot be a ground to not follow Bombay High Court judgment. Hence; again; appeal by Revenue.
The Hon’ble Bombay High Court dismissed the appeal filed by the department. It held: (i) the commissioner appeals and the Tribunal has rightly followed decision in the case of Container Corporation and Gurinder Singh Bawa; (ii) merely because a decision is challenged it does not loose its precedential value; unless it it reversed; (iii) the decision of the High Court in container Corporation has been approved by the Apex Court in Abhisar case; iv) no question of law; much less substantial arises.
